Correlation Between Duksan Hi and GeneBioTech
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and GeneBioTech 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 GeneBioTech 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 GeneBioTech Co, you can compare the effects of market volatilities on Duksan Hi and GeneBioTech 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 GeneBioTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and GeneBioTech.
Diversification Opportunities for Duksan Hi and GeneBioTech
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and GeneBioTech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and GeneBioTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneBioTech 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 GeneBioTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneBioTech has no effect on the direction of Duksan Hi i.e., Duksan Hi and GeneBioTech go up and down completely randomly.
Pair Corralation between Duksan Hi and GeneBioTech
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 1.7 times more return on investment than GeneBioTech. However, Duksan Hi is 1.7 times more volatile than GeneBioTech Co. It trades about 0.0 of its potential returns per unit of risk. GeneBioTech Co is currently generating about -0.01 per unit of risk. If you would invest 502,000 in Duksan Hi Metal on September 26, 2024 and sell it today you would lose (119,000) from holding Duksan Hi Metal or give up 23.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. GeneBioTech Co
Performance |
| Timeline |
| Duksan Hi Metal |
| GeneBioTech |
Duksan Hi and GeneBioTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and GeneBioTech
The main advantage of trading using opposite Duksan Hi and GeneBioTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, GeneBioTech 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 GeneBioTech will offset losses from the drop in GeneBioTech's long position.| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
| GeneBioTech vs. A Tech Solution Co | GeneBioTech vs. SS TECH | GeneBioTech vs. PJ Metal Co | GeneBioTech vs. Duksan Hi Metal |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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