Correlation Between Duksan Hi and OLIPASS
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and OLIPASS 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 OLIPASS 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 OLIPASS, you can compare the effects of market volatilities on Duksan Hi and OLIPASS 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 OLIPASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and OLIPASS.
Diversification Opportunities for Duksan Hi and OLIPASS
Excellent diversification
The 3 months correlation between Duksan and OLIPASS is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and OLIPASS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLIPASS 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 OLIPASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLIPASS has no effect on the direction of Duksan Hi i.e., Duksan Hi and OLIPASS go up and down completely randomly.
Pair Corralation between Duksan Hi and OLIPASS
Assuming the 90 days trading horizon Duksan Hi is expected to generate 1.03 times less return on investment than OLIPASS. But when comparing it to its historical volatility, Duksan Hi Metal is 2.21 times less risky than OLIPASS. It trades about 0.27 of its potential returns per unit of risk. OLIPASS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 228,000 in OLIPASS on November 28, 2024 and sell it today you would earn a total of 25,000 from holding OLIPASS or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. OLIPASS
Performance |
| Timeline |
| Duksan Hi Metal |
| OLIPASS |
Duksan Hi and OLIPASS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and OLIPASS
The main advantage of trading using opposite Duksan Hi and OLIPASS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, OLIPASS 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 OLIPASS will offset losses from the drop in OLIPASS's long position.| Duksan Hi vs. Seoyon Topmetal Co | Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. Busan Industrial Co | Duksan Hi vs. Hyundai Industrial Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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