Correlation Between Duksan Hi and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Duksan Hi and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and DAEDUCK ELECTRONICS.
Diversification Opportunities for Duksan Hi and DAEDUCK ELECTRONICS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and DAEDUCK is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Duksan Hi i.e., Duksan Hi and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Duksan Hi and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 2.1 times more return on investment than DAEDUCK ELECTRONICS. However, Duksan Hi is 2.1 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about 0.0 of its potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about -0.02 per unit of risk. If you would invest 455,500 in Duksan Hi Metal on September 13, 2024 and sell it today you would lose (84,000) from holding Duksan Hi Metal or give up 18.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Duksan Hi Metal |
| DAEDUCK ELECTRONICS CoLtd |
Duksan Hi and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Duksan Hi and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
| DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co | DAEDUCK ELECTRONICS vs. Solution Advanced Technology | DAEDUCK ELECTRONICS vs. Busan 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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