Correlation Between Green Cross and Daishin Information
Can any of the company-specific risk be diversified away by investing in both Green Cross and Daishin Information 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 Green Cross and Daishin Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cross Medical and Daishin Information Communications, you can compare the effects of market volatilities on Green Cross and Daishin Information 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 Green Cross with a short position of Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and Daishin Information.
Diversification Opportunities for Green Cross and Daishin Information
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Green and Daishin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information and Green Cross 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 Green Cross Medical are associated (or correlated) with Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of Green Cross i.e., Green Cross and Daishin Information go up and down completely randomly.
Pair Corralation between Green Cross and Daishin Information
Assuming the 90 days trading horizon Green Cross Medical is expected to under-perform the Daishin Information. In addition to that, Green Cross is 1.21 times more volatile than Daishin Information Communications. It trades about -0.24 of its total potential returns per unit of risk. Daishin Information Communications is currently generating about -0.03 per unit of volatility. If you would invest 87,000 in Daishin Information Communications on September 2, 2024 and sell it today you would lose (1,100) from holding Daishin Information Communications or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cross Medical vs. Daishin Information Communicat
Performance |
| Timeline |
| Green Cross Medical |
| Daishin Information |
Green Cross and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cross and Daishin Information
The main advantage of trading using opposite Green Cross and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information's long position.| Green Cross vs. AptaBio Therapeutics | Green Cross vs. KT Hitel | Green Cross vs. SillaJen | Green Cross vs. Cytogen |
| Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind | Daishin Information vs. Mirae Asset Daewoo | Daishin Information vs. Finebesteel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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