Correlation Between Daejung Chemicals and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Daejung Chemicals and YeSUN Tech 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 YeSUN Tech 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 YeSUN Tech CoLtd, you can compare the effects of market volatilities on Daejung Chemicals and YeSUN Tech 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 YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daejung Chemicals and YeSUN Tech.
Diversification Opportunities for Daejung Chemicals and YeSUN Tech
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Daejung and YeSUN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Daejung Chemicals Metals and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd 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 YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Daejung Chemicals i.e., Daejung Chemicals and YeSUN Tech go up and down completely randomly.
Pair Corralation between Daejung Chemicals and YeSUN Tech
Assuming the 90 days trading horizon Daejung Chemicals Metals is expected to generate 0.47 times more return on investment than YeSUN Tech. However, Daejung Chemicals Metals is 2.13 times less risky than YeSUN Tech. It trades about -0.1 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.26 per unit of risk. If you would invest 1,318,000 in Daejung Chemicals Metals on September 12, 2024 and sell it today you would lose (76,000) from holding Daejung Chemicals Metals or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daejung Chemicals Metals vs. YeSUN Tech CoLtd
Performance |
| Timeline |
| Daejung Chemicals Metals |
| YeSUN Tech CoLtd |
Daejung Chemicals and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daejung Chemicals and YeSUN Tech
The main advantage of trading using opposite Daejung Chemicals and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daejung Chemicals position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech'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 |
| YeSUN Tech vs. Youngsin Metal Industrial | YeSUN Tech vs. Digital Power Communications | YeSUN Tech vs. Kukil Metal Co | YeSUN Tech vs. Inzi Display CoLtd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |