Correlation Between Daesung Hi and GS Retail
Can any of the company-specific risk be diversified away by investing in both Daesung Hi and GS Retail 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 Hi and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Hi Tech Co and GS Retail Co, you can compare the effects of market volatilities on Daesung Hi and GS Retail 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 Hi with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and GS Retail.
Diversification Opportunities for Daesung Hi and GS Retail
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daesung and 007070 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail and Daesung Hi 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 Hi Tech Co are associated (or correlated) with GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of Daesung Hi i.e., Daesung Hi and GS Retail go up and down completely randomly.
Pair Corralation between Daesung Hi and GS Retail
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the GS Retail. But the stock apears to be less risky and, when comparing its historical volatility, Daesung Hi Tech Co is 1.11 times less risky than GS Retail. The stock trades about -0.21 of its potential returns per unit of risk. The GS Retail Co is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,927,243 in GS Retail Co on October 26, 2024 and sell it today you would lose (367,243) from holding GS Retail Co or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.13% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. GS Retail Co
Performance |
| Timeline |
| Daesung Hi Tech |
| GS Retail |
Daesung Hi and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and GS Retail
The main advantage of trading using opposite Daesung Hi and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. LG Energy Solution | Daesung Hi vs. SK Hynix |
| GS Retail vs. KB Financial Group | GS Retail vs. Shinhan Financial Group | GS Retail vs. Hana Financial | GS Retail vs. Woori Financial Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |