Correlation Between Daesung Hi and SKONEC Entertainment
Can any of the company-specific risk be diversified away by investing in both Daesung Hi and SKONEC Entertainment 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 SKONEC Entertainment 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 SKONEC Entertainment Co, you can compare the effects of market volatilities on Daesung Hi and SKONEC Entertainment 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 SKONEC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and SKONEC Entertainment.
Diversification Opportunities for Daesung Hi and SKONEC Entertainment
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daesung and SKONEC is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co and SKONEC Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKONEC Entertainment 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 SKONEC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKONEC Entertainment has no effect on the direction of Daesung Hi i.e., Daesung Hi and SKONEC Entertainment go up and down completely randomly.
Pair Corralation between Daesung Hi and SKONEC Entertainment
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to generate 0.98 times more return on investment than SKONEC Entertainment. However, Daesung Hi Tech Co is 1.02 times less risky than SKONEC Entertainment. It trades about -0.04 of its potential returns per unit of risk. SKONEC Entertainment Co is currently generating about -0.06 per unit of risk. If you would invest 905,000 in Daesung Hi Tech Co on October 13, 2024 and sell it today you would lose (565,500) from holding Daesung Hi Tech Co or give up 62.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. SKONEC Entertainment Co
Performance |
| Timeline |
| Daesung Hi Tech |
| SKONEC Entertainment |
Daesung Hi and SKONEC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and SKONEC Entertainment
The main advantage of trading using opposite Daesung Hi and SKONEC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi position performs unexpectedly, SKONEC Entertainment 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 SKONEC Entertainment will offset losses from the drop in SKONEC Entertainment'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 |
| SKONEC Entertainment vs. Sam Yang Foods | SKONEC Entertainment vs. Daishin Information Communications | SKONEC Entertainment vs. Samick Musical Instruments | SKONEC Entertainment vs. ECSTELECOM 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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