Correlation Between Fine Besteel and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and DAEDUCK ELECTRONICS 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 Fine Besteel and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Fine Besteel and DAEDUCK ELECTRONICS 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 Fine Besteel with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and DAEDUCK ELECTRONICS.
Diversification Opportunities for Fine Besteel and DAEDUCK ELECTRONICS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fine and DAEDUCK is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Fine Besteel i.e., Fine Besteel and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Fine Besteel and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 2.08 times more return on investment than DAEDUCK ELECTRONICS. However, Fine Besteel is 2.08 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about -0.03 of its potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about -0.08 per unit of risk. If you would invest 128,000 in Fine Besteel Co on September 3, 2024 and sell it today you would lose (23,300) from holding Fine Besteel Co or give up 18.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Fine Besteel |
| DAEDUCK ELECTRONICS CoLtd |
Fine Besteel and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Fine Besteel and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
| DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co | DAEDUCK ELECTRONICS vs. Busan Industrial Co | DAEDUCK ELECTRONICS vs. UNISEM 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 CEOs Directory module to screen CEOs from public companies around the world.
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