Correlation Between Duksan Hi and Alton Sports
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Alton Sports 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 Alton Sports 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 Alton Sports CoLtd, you can compare the effects of market volatilities on Duksan Hi and Alton Sports 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 Alton Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Alton Sports.
Diversification Opportunities for Duksan Hi and Alton Sports
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duksan and Alton is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Alton Sports CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alton Sports CoLtd 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 Alton Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alton Sports CoLtd has no effect on the direction of Duksan Hi i.e., Duksan Hi and Alton Sports go up and down completely randomly.
Pair Corralation between Duksan Hi and Alton Sports
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Alton Sports. In addition to that, Duksan Hi is 1.62 times more volatile than Alton Sports CoLtd. It trades about -0.06 of its total potential returns per unit of risk. Alton Sports CoLtd is currently generating about -0.05 per unit of volatility. If you would invest 159,700 in Alton Sports CoLtd on November 2, 2024 and sell it today you would lose (9,600) from holding Alton Sports CoLtd or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Alton Sports CoLtd
Performance |
| Timeline |
| Duksan Hi Metal |
| Alton Sports CoLtd |
Duksan Hi and Alton Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Alton Sports
The main advantage of trading using opposite Duksan Hi and Alton Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Alton Sports 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 Alton Sports will offset losses from the drop in Alton Sports' long position.| Duksan Hi vs. Wireless Power Amplifier | Duksan Hi vs. Ssangyong Information Communication | Duksan Hi vs. TS Investment Corp | Duksan Hi vs. Atinum Investment Co |
| Alton Sports vs. Daewon Media Co | Alton Sports vs. TJ media Co | Alton Sports vs. Digital Multimedia Technology | Alton Sports vs. Digital Power Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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