Correlation Between Chorokbaem Healthcare and DIGITAL CHOSUN
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare and DIGITAL CHOSUN 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 CHOSUN 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 CHOSUN, you can compare the effects of market volatilities on Chorokbaem Healthcare and DIGITAL CHOSUN 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 CHOSUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and DIGITAL CHOSUN.
Diversification Opportunities for Chorokbaem Healthcare and DIGITAL CHOSUN
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chorokbaem and DIGITAL is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and DIGITAL CHOSUN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIGITAL CHOSUN 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 CHOSUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIGITAL CHOSUN has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and DIGITAL CHOSUN go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and DIGITAL CHOSUN
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to under-perform the DIGITAL CHOSUN. But the stock apears to be less risky and, when comparing its historical volatility, Chorokbaem Healthcare Co is 1.5 times less risky than DIGITAL CHOSUN. The stock trades about -0.18 of its potential returns per unit of risk. The DIGITAL CHOSUN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 167,900 in DIGITAL CHOSUN on September 22, 2024 and sell it today you would earn a total of 3,200 from holding DIGITAL CHOSUN or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. DIGITAL CHOSUN
Performance |
| Timeline |
| Chorokbaem Healthcare |
| DIGITAL CHOSUN |
Chorokbaem Healthcare and DIGITAL CHOSUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and DIGITAL CHOSUN
The main advantage of trading using opposite Chorokbaem Healthcare and DIGITAL CHOSUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare position performs unexpectedly, DIGITAL CHOSUN 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 CHOSUN will offset losses from the drop in DIGITAL CHOSUN's long position.| Chorokbaem Healthcare vs. Jeil Steel Mfg | Chorokbaem Healthcare vs. Hankukpackage Co | Chorokbaem Healthcare vs. CKH Food Health | Chorokbaem Healthcare vs. Sempio Foods Co |
| DIGITAL CHOSUN vs. Han Kook Steel | DIGITAL CHOSUN vs. J Steel Co | DIGITAL CHOSUN vs. Cuckoo Electronics Co | DIGITAL CHOSUN vs. Insun Environment New |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |