Correlation Between Duksan Hi and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and NewFlex Technology 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 NewFlex Technology 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 NewFlex Technology Co, you can compare the effects of market volatilities on Duksan Hi and NewFlex Technology 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 NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and NewFlex Technology.
Diversification Opportunities for Duksan Hi and NewFlex Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and NewFlex is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology 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 NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of Duksan Hi i.e., Duksan Hi and NewFlex Technology go up and down completely randomly.
Pair Corralation between Duksan Hi and NewFlex Technology
Assuming the 90 days trading horizon Duksan Hi is expected to generate 38.81 times less return on investment than NewFlex Technology. But when comparing it to its historical volatility, Duksan Hi Metal is 1.38 times less risky than NewFlex Technology. It trades about 0.01 of its potential returns per unit of risk. NewFlex Technology Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 479,000 in NewFlex Technology Co on September 25, 2024 and sell it today you would earn a total of 64,000 from holding NewFlex Technology Co or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. NewFlex Technology Co
Performance |
| Timeline |
| Duksan Hi Metal |
| NewFlex Technology |
Duksan Hi and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and NewFlex Technology
The main advantage of trading using opposite Duksan Hi and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| Duksan Hi vs. Home Center Holdings | Duksan Hi vs. Woori Technology | Duksan Hi vs. Hwangkum Steel Technology | Duksan Hi vs. Global Standard Technology |
| NewFlex Technology vs. Seoyon Topmetal Co | NewFlex Technology vs. Duksan Hi Metal | NewFlex Technology vs. PJ Metal Co | NewFlex Technology vs. Youngsin Metal Industrial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |