Correlation Between Daesung Industrial and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Daesung Industrial and Mgame Corp 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 Mgame Corp 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 Mgame Corp, you can compare the effects of market volatilities on Daesung Industrial and Mgame Corp 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 Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Industrial and Mgame Corp.
Diversification Opportunities for Daesung Industrial and Mgame Corp
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daesung and Mgame is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Industrial Co and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame Corp 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 Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of Daesung Industrial i.e., Daesung Industrial and Mgame Corp go up and down completely randomly.
Pair Corralation between Daesung Industrial and Mgame Corp
Assuming the 90 days trading horizon Daesung Industrial Co is expected to generate 1.03 times more return on investment than Mgame Corp. However, Daesung Industrial is 1.03 times more volatile than Mgame Corp. It trades about -0.19 of its potential returns per unit of risk. Mgame Corp is currently generating about -0.28 per unit of risk. If you would invest 345,500 in Daesung Industrial Co on October 14, 2024 and sell it today you would lose (16,500) from holding Daesung Industrial Co or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Industrial Co vs. Mgame Corp
Performance |
| Timeline |
| Daesung Industrial |
| Mgame Corp |
Daesung Industrial and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Industrial and Mgame Corp
The main advantage of trading using opposite Daesung Industrial and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Industrial position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp's long position.| Daesung Industrial vs. AptaBio Therapeutics | Daesung Industrial vs. Daewoo SBI SPAC | Daesung Industrial vs. Dream Security co | Daesung Industrial vs. Microfriend |
| Mgame Corp vs. ABOV Semiconductor Co | Mgame Corp vs. Kakao Games Corp | Mgame Corp vs. Samsung Life Insurance | Mgame Corp vs. Daesung Industrial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |