Correlation Between DAEYANG ELECTRICCoLtd and GS Retail
Can any of the company-specific risk be diversified away by investing in both DAEYANG ELECTRICCoLtd and GS Retail 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 DAEYANG ELECTRICCoLtd and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEYANG ELECTRICCoLtd and GS Retail Co, you can compare the effects of market volatilities on DAEYANG ELECTRICCoLtd and GS Retail 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 DAEYANG ELECTRICCoLtd with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEYANG ELECTRICCoLtd and GS Retail.
Diversification Opportunities for DAEYANG ELECTRICCoLtd and GS Retail
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAEYANG and 007070 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding DAEYANG ELECTRICCoLtd and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail and DAEYANG ELECTRICCoLtd 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 DAEYANG ELECTRICCoLtd are associated (or correlated) with GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of DAEYANG ELECTRICCoLtd i.e., DAEYANG ELECTRICCoLtd and GS Retail go up and down completely randomly.
Pair Corralation between DAEYANG ELECTRICCoLtd and GS Retail
Assuming the 90 days trading horizon DAEYANG ELECTRICCoLtd is expected to generate 1.17 times more return on investment than GS Retail. However, DAEYANG ELECTRICCoLtd is 1.17 times more volatile than GS Retail Co. It trades about 0.01 of its potential returns per unit of risk. GS Retail Co is currently generating about -0.02 per unit of risk. If you would invest 1,229,878 in DAEYANG ELECTRICCoLtd on September 3, 2024 and sell it today you would earn a total of 56,122 from holding DAEYANG ELECTRICCoLtd or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
DAEYANG ELECTRICCoLtd vs. GS Retail Co
Performance |
| Timeline |
| DAEYANG ELECTRICCoLtd |
| GS Retail |
DAEYANG ELECTRICCoLtd and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEYANG ELECTRICCoLtd and GS Retail
The main advantage of trading using opposite DAEYANG ELECTRICCoLtd and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEYANG ELECTRICCoLtd position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| DAEYANG ELECTRICCoLtd vs. LG Display | DAEYANG ELECTRICCoLtd vs. Hyundai Motor | DAEYANG ELECTRICCoLtd vs. Hyundai Motor Co | DAEYANG ELECTRICCoLtd vs. Hyundai Motor Co |
| GS Retail vs. CU Medical Systems | GS Retail vs. Daejung Chemicals Metals | GS Retail vs. Alton Sports CoLtd | GS Retail vs. Hannong Chemicals |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |