Correlation Between Asia Economy and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Asia Economy and Duksan Hi 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 Asia Economy and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Economy Daily and Duksan Hi Metal, you can compare the effects of market volatilities on Asia Economy and Duksan Hi 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 Asia Economy with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Economy and Duksan Hi.
Diversification Opportunities for Asia Economy and Duksan Hi
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Duksan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Asia Economy Daily and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Asia Economy 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 Asia Economy Daily are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Asia Economy i.e., Asia Economy and Duksan Hi go up and down completely randomly.
Pair Corralation between Asia Economy and Duksan Hi
Assuming the 90 days trading horizon Asia Economy Daily is expected to generate 0.77 times more return on investment than Duksan Hi. However, Asia Economy Daily is 1.3 times less risky than Duksan Hi. It trades about 0.36 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.06 per unit of risk. If you would invest 129,600 in Asia Economy Daily on September 14, 2024 and sell it today you would earn a total of 31,400 from holding Asia Economy Daily or generate 24.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Economy Daily vs. Duksan Hi Metal
Performance |
| Timeline |
| Asia Economy Daily |
| Duksan Hi Metal |
Asia Economy and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Economy and Duksan Hi
The main advantage of trading using opposite Asia Economy and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Economy position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Asia Economy vs. Daelim Trading Co | Asia Economy vs. Lotte Chilsung Beverage | Asia Economy vs. Nh Investment And | Asia Economy vs. ABOV Semiconductor Co |
| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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