Correlation Between Daesung Industrial and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Daesung Industrial and PLAYWITH 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 Daesung Industrial and PLAYWITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Industrial Co and PLAYWITH, you can compare the effects of market volatilities on Daesung Industrial and PLAYWITH 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 Daesung Industrial with a short position of PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Industrial and PLAYWITH.
Diversification Opportunities for Daesung Industrial and PLAYWITH
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daesung and PLAYWITH is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Industrial Co and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH and Daesung Industrial 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 Daesung Industrial Co are associated (or correlated) with PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Daesung Industrial i.e., Daesung Industrial and PLAYWITH go up and down completely randomly.
Pair Corralation between Daesung Industrial and PLAYWITH
Assuming the 90 days trading horizon Daesung Industrial Co is expected to generate 1.26 times more return on investment than PLAYWITH. However, Daesung Industrial is 1.26 times more volatile than PLAYWITH. It trades about -0.1 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.23 per unit of risk. If you would invest 328,500 in Daesung Industrial Co on November 8, 2024 and sell it today you would lose (10,000) from holding Daesung Industrial Co or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Industrial Co vs. PLAYWITH
Performance |
| Timeline |
| Daesung Industrial |
| PLAYWITH |
Daesung Industrial and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Industrial and PLAYWITH
The main advantage of trading using opposite Daesung Industrial and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Industrial position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Daesung Industrial vs. AptaBio Therapeutics | Daesung Industrial vs. Daewoo SBI SPAC | Daesung Industrial vs. Dream Security co | Daesung Industrial vs. Microfriend |
| PLAYWITH vs. Mobile Appliance | PLAYWITH vs. SEOWONINTECHCoLtd | PLAYWITH vs. Cuckoo Homesys Co | PLAYWITH vs. Ewon Comfortech Co |
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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