Correlation Between ITM Semiconductor and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both ITM Semiconductor and Duksan Hi 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 ITM Semiconductor and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITM Semiconductor Co and Duksan Hi Metal, you can compare the effects of market volatilities on ITM Semiconductor and Duksan Hi 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 ITM Semiconductor with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Semiconductor and Duksan Hi.
Diversification Opportunities for ITM Semiconductor and Duksan Hi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ITM and Duksan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ITM Semiconductor Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and ITM Semiconductor 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 ITM Semiconductor Co are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of ITM Semiconductor i.e., ITM Semiconductor and Duksan Hi go up and down completely randomly.
Pair Corralation between ITM Semiconductor and Duksan Hi
Assuming the 90 days trading horizon ITM Semiconductor Co is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, ITM Semiconductor Co is 1.02 times less risky than Duksan Hi. The stock trades about -0.03 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 502,000 in Duksan Hi Metal on September 2, 2024 and sell it today you would lose (128,000) from holding Duksan Hi Metal or give up 25.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITM Semiconductor Co vs. Duksan Hi Metal
Performance |
| Timeline |
| ITM Semiconductor |
| Duksan Hi Metal |
ITM Semiconductor and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Semiconductor and Duksan Hi
The main advantage of trading using opposite ITM Semiconductor and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Semiconductor position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. LX Semicon Co | ITM Semiconductor vs. People Technology | ITM Semiconductor vs. SIMMTECH Co |
| Duksan Hi vs. Digital Power Communications | Duksan Hi vs. Dongil Metal Co | Duksan Hi vs. BGF Retail Co | Duksan Hi vs. Echomarketing CoLtd |
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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