Correlation Between Duksan Hi and Genolution
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Genolution 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 Genolution 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 Genolution, you can compare the effects of market volatilities on Duksan Hi and Genolution 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 Genolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Genolution.
Diversification Opportunities for Duksan Hi and Genolution
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and Genolution is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Genolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genolution 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 Genolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genolution has no effect on the direction of Duksan Hi i.e., Duksan Hi and Genolution go up and down completely randomly.
Pair Corralation between Duksan Hi and Genolution
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Genolution. But the stock apears to be less risky and, when comparing its historical volatility, Duksan Hi Metal is 1.11 times less risky than Genolution. The stock trades about -0.14 of its potential returns per unit of risk. The Genolution is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 403,000 in Genolution on September 3, 2024 and sell it today you would lose (179,000) from holding Genolution or give up 44.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Genolution
Performance |
| Timeline |
| Duksan Hi Metal |
| Genolution |
Duksan Hi and Genolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Genolution
The main advantage of trading using opposite Duksan Hi and Genolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Genolution 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 Genolution will offset losses from the drop in Genolution'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 |
| Genolution vs. Bridge Biotherapeutics | Genolution vs. AptaBio Therapeutics | Genolution vs. Cytogen | Genolution vs. WOOJUNG BIO |
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 Stocks Directory module to find actively traded stocks across global markets.
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