Correlation Between Chorokbaem Healthcare and Digital Power
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare and Digital Power 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 Chorokbaem Healthcare and Digital Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and Digital Power Communications, you can compare the effects of market volatilities on Chorokbaem Healthcare and Digital Power 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 Chorokbaem Healthcare with a short position of Digital Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and Digital Power.
Diversification Opportunities for Chorokbaem Healthcare and Digital Power
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chorokbaem and Digital is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and Digital Power Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Power Commun and Chorokbaem Healthcare 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 Chorokbaem Healthcare Co are associated (or correlated) with Digital Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Power Commun has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and Digital Power go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and Digital Power
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to generate 3.05 times more return on investment than Digital Power. However, Chorokbaem Healthcare is 3.05 times more volatile than Digital Power Communications. It trades about 0.19 of its potential returns per unit of risk. Digital Power Communications is currently generating about 0.03 per unit of risk. If you would invest 29,400 in Chorokbaem Healthcare Co on October 14, 2024 and sell it today you would earn a total of 4,600 from holding Chorokbaem Healthcare Co or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. Digital Power Communications
Performance |
| Timeline |
| Chorokbaem Healthcare |
| Digital Power Commun |
Chorokbaem Healthcare and Digital Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and Digital Power
The main advantage of trading using opposite Chorokbaem Healthcare and Digital Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare position performs unexpectedly, Digital Power 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 Digital Power will offset losses from the drop in Digital Power's long position.| Chorokbaem Healthcare vs. Korea Air Svc | Chorokbaem Healthcare vs. Tway Air Co | Chorokbaem Healthcare vs. iNtRON Biotechnology | Chorokbaem Healthcare vs. E Investment Development |
| Digital Power vs. Daou Data Corp | Digital Power vs. Songwon Industrial Co | Digital Power vs. PJ Metal Co | Digital Power vs. Industrial Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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