Correlation Between Duksan Hi and CHOROKBAEM PANY
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and CHOROKBAEM PANY at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Duksan Hi and CHOROKBAEM PANY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and CHOROKBAEM PANY Co, you can compare the effects of market volatilities on Duksan Hi and CHOROKBAEM PANY and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Duksan Hi with a short position of CHOROKBAEM PANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and CHOROKBAEM PANY.
Diversification Opportunities for Duksan Hi and CHOROKBAEM PANY
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and CHOROKBAEM is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and CHOROKBAEM PANY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHOROKBAEM PANY and Duksan Hi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Duksan Hi Metal are associated (or correlated) with CHOROKBAEM PANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHOROKBAEM PANY has no effect on the direction of Duksan Hi i.e., Duksan Hi and CHOROKBAEM PANY go up and down completely randomly.
Pair Corralation between Duksan Hi and CHOROKBAEM PANY
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the CHOROKBAEM PANY. In addition to that, Duksan Hi is 2.16 times more volatile than CHOROKBAEM PANY Co. It trades about -0.3 of its total potential returns per unit of risk. CHOROKBAEM PANY Co is currently generating about -0.2 per unit of volatility. If you would invest 36,400 in CHOROKBAEM PANY Co on September 1, 2024 and sell it today you would lose (2,400) from holding CHOROKBAEM PANY Co or give up 6.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Duksan Hi Metal vs. CHOROKBAEM PANY Co
Performance |
| Timeline |
| Duksan Hi Metal |
| CHOROKBAEM PANY |
Duksan Hi and CHOROKBAEM PANY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and CHOROKBAEM PANY
The main advantage of trading using opposite Duksan Hi and CHOROKBAEM PANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, CHOROKBAEM PANY can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CHOROKBAEM PANY will offset losses from the drop in CHOROKBAEM PANY's long position.| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. PJ Metal Co | Duksan Hi vs. Dongbang Transport Logistics | Duksan Hi vs. Nasmedia Co |
| CHOROKBAEM PANY vs. Dongbang Transport Logistics | CHOROKBAEM PANY vs. Jin Air Co | CHOROKBAEM PANY vs. Duksan Hi Metal | CHOROKBAEM PANY vs. LG Display Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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