Correlation Between E Investment and Daesung Hi
Can any of the company-specific risk be diversified away by investing in both E Investment and Daesung 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 E Investment and Daesung Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Daesung Hi Tech Co, you can compare the effects of market volatilities on E Investment and Daesung 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 E Investment with a short position of Daesung Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Daesung Hi.
Diversification Opportunities for E Investment and Daesung Hi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Daesung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Daesung Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Hi Tech and E Investment 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 E Investment Development are associated (or correlated) with Daesung Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Hi Tech has no effect on the direction of E Investment i.e., E Investment and Daesung Hi go up and down completely randomly.
Pair Corralation between E Investment and Daesung Hi
If you would invest 139,200 in E Investment Development on November 7, 2024 and sell it today you would earn a total of 0.00 from holding E Investment Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
E Investment Development vs. Daesung Hi Tech Co
Performance |
| Timeline |
| E Investment Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Daesung Hi Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
E Investment and Daesung Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Daesung Hi
The main advantage of trading using opposite E Investment and Daesung Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Daesung 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 Daesung Hi will offset losses from the drop in Daesung Hi's long position.| E Investment vs. Hanwha Chemical Corp | E Investment vs. ISU Chemical Co | E Investment vs. Hanil Chemical Ind | E Investment vs. Hansol Chemical Co |
| Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. SK Hynix | Daesung Hi vs. LG Chem | Daesung Hi vs. Samsung SDI |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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