Correlation Between Grand Korea and Daejung Chemicals
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Daejung Chemicals 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 Grand Korea and Daejung Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Daejung Chemicals Metals, you can compare the effects of market volatilities on Grand Korea and Daejung Chemicals 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 Grand Korea with a short position of Daejung Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Daejung Chemicals.
Diversification Opportunities for Grand Korea and Daejung Chemicals
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grand and Daejung is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Daejung Chemicals Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejung Chemicals Metals and Grand Korea 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 Grand Korea Leisure are associated (or correlated) with Daejung Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejung Chemicals Metals has no effect on the direction of Grand Korea i.e., Grand Korea and Daejung Chemicals go up and down completely randomly.
Pair Corralation between Grand Korea and Daejung Chemicals
Assuming the 90 days trading horizon Grand Korea Leisure is expected to generate 1.19 times more return on investment than Daejung Chemicals. However, Grand Korea is 1.19 times more volatile than Daejung Chemicals Metals. It trades about 0.06 of its potential returns per unit of risk. Daejung Chemicals Metals is currently generating about -0.32 per unit of risk. If you would invest 1,146,000 in Grand Korea Leisure on September 1, 2024 and sell it today you would earn a total of 26,000 from holding Grand Korea Leisure or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Daejung Chemicals Metals
Performance |
| Timeline |
| Grand Korea Leisure |
| Daejung Chemicals Metals |
Grand Korea and Daejung Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Daejung Chemicals
The main advantage of trading using opposite Grand Korea and Daejung Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Daejung Chemicals 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 Daejung Chemicals will offset losses from the drop in Daejung Chemicals' long position.| Grand Korea vs. Cots Technology Co | Grand Korea vs. RFTech Co | Grand Korea vs. Shinhan Inverse Silver | Grand Korea vs. Vitzro Tech Co |
| Daejung Chemicals vs. LG Chem | Daejung Chemicals vs. Chunbo Co | Daejung Chemicals vs. LIG ES SPAC | Daejung Chemicals vs. Youngchang Chemical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |