Correlation Between Daesung Hi and Heungkuk Metaltech
Can any of the company-specific risk be diversified away by investing in both Daesung Hi and Heungkuk Metaltech 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 Heungkuk Metaltech 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 Heungkuk Metaltech CoLtd, you can compare the effects of market volatilities on Daesung Hi and Heungkuk Metaltech 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 Heungkuk Metaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and Heungkuk Metaltech.
Diversification Opportunities for Daesung Hi and Heungkuk Metaltech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Daesung and Heungkuk is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co and Heungkuk Metaltech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heungkuk Metaltech CoLtd 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 Heungkuk Metaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heungkuk Metaltech CoLtd has no effect on the direction of Daesung Hi i.e., Daesung Hi and Heungkuk Metaltech go up and down completely randomly.
Pair Corralation between Daesung Hi and Heungkuk Metaltech
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the Heungkuk Metaltech. In addition to that, Daesung Hi is 2.02 times more volatile than Heungkuk Metaltech CoLtd. It trades about -0.07 of its total potential returns per unit of risk. Heungkuk Metaltech CoLtd is currently generating about 0.02 per unit of volatility. If you would invest 506,873 in Heungkuk Metaltech CoLtd on October 14, 2024 and sell it today you would earn a total of 24,127 from holding Heungkuk Metaltech CoLtd or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. Heungkuk Metaltech CoLtd
Performance |
| Timeline |
| Daesung Hi Tech |
| Heungkuk Metaltech CoLtd |
Daesung Hi and Heungkuk Metaltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and Heungkuk Metaltech
The main advantage of trading using opposite Daesung Hi and Heungkuk Metaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi position performs unexpectedly, Heungkuk Metaltech 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 Heungkuk Metaltech will offset losses from the drop in Heungkuk Metaltech's long position.| Daesung Hi vs. DONGKUK TED METAL | Daesung Hi vs. Eugene Technology CoLtd | Daesung Hi vs. Seers Technology | Daesung Hi vs. iNtRON Biotechnology |
| Heungkuk Metaltech vs. Ssangyong Materials Corp | Heungkuk Metaltech vs. LS Materials | Heungkuk Metaltech vs. iNtRON Biotechnology | Heungkuk Metaltech vs. Polaris Office Corp |
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
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |