Correlation Between Duksan Hi and FoodNamoo
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and FoodNamoo 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 FoodNamoo 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 FoodNamoo, you can compare the effects of market volatilities on Duksan Hi and FoodNamoo 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 FoodNamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and FoodNamoo.
Diversification Opportunities for Duksan Hi and FoodNamoo
Very weak diversification
The 3 months correlation between Duksan and FoodNamoo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and FoodNamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FoodNamoo 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 FoodNamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FoodNamoo has no effect on the direction of Duksan Hi i.e., Duksan Hi and FoodNamoo go up and down completely randomly.
Pair Corralation between Duksan Hi and FoodNamoo
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 0.66 times more return on investment than FoodNamoo. However, Duksan Hi Metal is 1.51 times less risky than FoodNamoo. It trades about -0.07 of its potential returns per unit of risk. FoodNamoo is currently generating about -0.08 per unit of risk. If you would invest 727,000 in Duksan Hi Metal on November 3, 2024 and sell it today you would lose (339,500) from holding Duksan Hi Metal or give up 46.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
Duksan Hi Metal vs. FoodNamoo
Performance |
| Timeline |
| Duksan Hi Metal |
| FoodNamoo |
Duksan Hi and FoodNamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and FoodNamoo
The main advantage of trading using opposite Duksan Hi and FoodNamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, FoodNamoo 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 FoodNamoo will offset losses from the drop in FoodNamoo's 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 |
| FoodNamoo vs. Maeil Dairies Co | FoodNamoo vs. HYUNDAI FEED | FoodNamoo vs. Neo Cremar Co | FoodNamoo vs. Dongwoo Farm To |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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