Correlation Between Daesung Hi and Jin Air
Can any of the company-specific risk be diversified away by investing in both Daesung Hi and Jin Air 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 Jin Air 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 Jin Air Co, you can compare the effects of market volatilities on Daesung Hi and Jin Air 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and Jin Air.
Diversification Opportunities for Daesung Hi and Jin Air
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daesung and Jin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Daesung Hi i.e., Daesung Hi and Jin Air go up and down completely randomly.
Pair Corralation between Daesung Hi and Jin Air
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the Jin Air. In addition to that, Daesung Hi is 1.63 times more volatile than Jin Air Co. It trades about -0.04 of its total potential returns per unit of risk. Jin Air Co is currently generating about -0.01 per unit of volatility. If you would invest 1,555,000 in Jin Air Co on September 1, 2024 and sell it today you would lose (377,000) from holding Jin Air Co or give up 24.24% of portfolio value 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. Jin Air Co
Performance |
| Timeline |
| Daesung Hi Tech |
| Jin Air |
Daesung Hi and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and Jin Air
The main advantage of trading using opposite Daesung Hi and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air'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 |
| Jin Air vs. LS Materials | Jin Air vs. TOPMATERIAL LTD | Jin Air vs. Aprogen Healthcare Games | Jin Air vs. Netmarble Games 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| 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 |