Correlation Between Duksan Hi and AFW
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and AFW 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 AFW 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 AFW Co, you can compare the effects of market volatilities on Duksan Hi and AFW 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 AFW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and AFW.
Diversification Opportunities for Duksan Hi and AFW
Almost no diversification
The 3 months correlation between Duksan and AFW is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and AFW Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFW Co 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 AFW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFW Co has no effect on the direction of Duksan Hi i.e., Duksan Hi and AFW go up and down completely randomly.
Pair Corralation between Duksan Hi and AFW
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 0.89 times more return on investment than AFW. However, Duksan Hi Metal is 1.12 times less risky than AFW. It trades about -0.16 of its potential returns per unit of risk. AFW Co is currently generating about -0.15 per unit of risk. If you would invest 429,000 in Duksan Hi Metal on September 13, 2024 and sell it today you would lose (64,000) from holding Duksan Hi Metal or give up 14.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Duksan Hi Metal vs. AFW Co
Performance |
| Timeline |
| Duksan Hi Metal |
| AFW Co |
Duksan Hi and AFW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and AFW
The main advantage of trading using opposite Duksan Hi and AFW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, AFW 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 AFW will offset losses from the drop in AFW's long position.| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
| AFW vs. Barunson Entertainment Arts | AFW vs. ChipsMedia | AFW vs. Duksan Hi Metal | AFW vs. Daiyang Metal 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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