Correlation Between Duksan Hi and SEOWONINTECHCoLtd
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd, you can compare the effects of market volatilities on Duksan Hi and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and SEOWONINTECHCoLtd.
Diversification Opportunities for Duksan Hi and SEOWONINTECHCoLtd
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and SEOWONINTECHCoLtd is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and SEOWONINTECHCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOWONINTECHCoLtd has no effect on the direction of Duksan Hi i.e., Duksan Hi and SEOWONINTECHCoLtd go up and down completely randomly.
Pair Corralation between Duksan Hi and SEOWONINTECHCoLtd
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the SEOWONINTECHCoLtd. In addition to that, Duksan Hi is 3.19 times more volatile than SEOWONINTECHCoLtd. It trades about -0.12 of its total potential returns per unit of risk. SEOWONINTECHCoLtd is currently generating about -0.04 per unit of volatility. If you would invest 543,232 in SEOWONINTECHCoLtd on November 6, 2024 and sell it today you would lose (14,232) from holding SEOWONINTECHCoLtd or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. SEOWONINTECHCoLtd
Performance |
| Timeline |
| Duksan Hi Metal |
| SEOWONINTECHCoLtd |
Duksan Hi and SEOWONINTECHCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and SEOWONINTECHCoLtd
The main advantage of trading using opposite Duksan Hi and SEOWONINTECHCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd will offset losses from the drop in SEOWONINTECHCoLtd's long position.| Duksan Hi vs. Hotel Shilla Co | Duksan Hi vs. Dongbu Insurance Co | Duksan Hi vs. Hanwha Life Insurance | Duksan Hi vs. Shinhan Inverse Silver |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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