Correlation Between Chorokbaem Healthcare and Dongsuh
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare and Dongsuh 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 Dongsuh 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 Dongsuh, you can compare the effects of market volatilities on Chorokbaem Healthcare and Dongsuh 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 Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and Dongsuh.
Diversification Opportunities for Chorokbaem Healthcare and Dongsuh
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chorokbaem and Dongsuh is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh 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 Dongsuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsuh has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and Dongsuh go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and Dongsuh
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to under-perform the Dongsuh. But the stock apears to be less risky and, when comparing its historical volatility, Chorokbaem Healthcare Co is 2.05 times less risky than Dongsuh. The stock trades about -0.28 of its potential returns per unit of risk. The Dongsuh is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,700,000 in Dongsuh on September 5, 2024 and sell it today you would earn a total of 270,000 from holding Dongsuh or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. Dongsuh
Performance |
| Timeline |
| Chorokbaem Healthcare |
| Dongsuh |
Chorokbaem Healthcare and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and Dongsuh
The main advantage of trading using opposite Chorokbaem Healthcare and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare position performs unexpectedly, Dongsuh 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 Dongsuh will offset losses from the drop in Dongsuh's long position.| Chorokbaem Healthcare vs. AptaBio Therapeutics | Chorokbaem Healthcare vs. KT Hitel | Chorokbaem Healthcare vs. SillaJen | Chorokbaem Healthcare vs. Cytogen |
| Dongsuh vs. Golden Bridge Investment | Dongsuh vs. NH Investment Securities | Dongsuh vs. Chorokbaem Healthcare Co | Dongsuh vs. Dongbang Transport Logistics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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