Correlation Between Daejung Chemicals and Maniker F
Can any of the company-specific risk be diversified away by investing in both Daejung Chemicals and Maniker F 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 Daejung Chemicals and Maniker F into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daejung Chemicals Metals and Maniker F G, you can compare the effects of market volatilities on Daejung Chemicals and Maniker F 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 Daejung Chemicals with a short position of Maniker F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daejung Chemicals and Maniker F.
Diversification Opportunities for Daejung Chemicals and Maniker F
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daejung and Maniker is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Daejung Chemicals Metals and Maniker F G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maniker F G and Daejung Chemicals 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 Daejung Chemicals Metals are associated (or correlated) with Maniker F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maniker F G has no effect on the direction of Daejung Chemicals i.e., Daejung Chemicals and Maniker F go up and down completely randomly.
Pair Corralation between Daejung Chemicals and Maniker F
Assuming the 90 days trading horizon Daejung Chemicals Metals is expected to under-perform the Maniker F. In addition to that, Daejung Chemicals is 1.06 times more volatile than Maniker F G. It trades about -0.22 of its total potential returns per unit of risk. Maniker F G is currently generating about -0.11 per unit of volatility. If you would invest 294,500 in Maniker F G on August 31, 2024 and sell it today you would lose (12,000) from holding Maniker F G or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Daejung Chemicals Metals vs. Maniker F G
Performance |
| Timeline |
| Daejung Chemicals Metals |
| Maniker F G |
Daejung Chemicals and Maniker F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daejung Chemicals and Maniker F
The main advantage of trading using opposite Daejung Chemicals and Maniker F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daejung Chemicals position performs unexpectedly, Maniker F 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 Maniker F will offset losses from the drop in Maniker F's long position.| Daejung Chemicals vs. LG Chem | Daejung Chemicals vs. Chunbo Co | Daejung Chemicals vs. DukSan Neolux CoLtd | Daejung Chemicals vs. Hyosung Chemical Corp |
| Maniker F vs. Choil Aluminum | Maniker F vs. Daejung Chemicals Metals | Maniker F vs. DataSolution | Maniker F vs. Hanjoo Light Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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