Correlation Between SEOJEON ELECTRIC and Haesung DS
Can any of the company-specific risk be diversified away by investing in both SEOJEON ELECTRIC and Haesung DS 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 SEOJEON ELECTRIC and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOJEON ELECTRIC MACHINERY and Haesung DS Co, you can compare the effects of market volatilities on SEOJEON ELECTRIC and Haesung DS 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 SEOJEON ELECTRIC with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOJEON ELECTRIC and Haesung DS.
Diversification Opportunities for SEOJEON ELECTRIC and Haesung DS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SEOJEON and Haesung is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SEOJEON ELECTRIC MACHINERY and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY are associated (or correlated) with Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of SEOJEON ELECTRIC i.e., SEOJEON ELECTRIC and Haesung DS go up and down completely randomly.
Pair Corralation between SEOJEON ELECTRIC and Haesung DS
Assuming the 90 days trading horizon SEOJEON ELECTRIC MACHINERY is expected to generate 1.31 times more return on investment than Haesung DS. However, SEOJEON ELECTRIC is 1.31 times more volatile than Haesung DS Co. It trades about 0.0 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.02 per unit of risk. If you would invest 662,000 in SEOJEON ELECTRIC MACHINERY on November 27, 2024 and sell it today you would lose (172,000) from holding SEOJEON ELECTRIC MACHINERY or give up 25.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOJEON ELECTRIC MACHINERY vs. Haesung DS Co
Performance |
| Timeline |
| SEOJEON ELECTRIC MAC |
| Haesung DS |
SEOJEON ELECTRIC and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOJEON ELECTRIC and Haesung DS
The main advantage of trading using opposite SEOJEON ELECTRIC and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOJEON ELECTRIC position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| SEOJEON ELECTRIC vs. SS TECH | SEOJEON ELECTRIC vs. Spolytech Co | SEOJEON ELECTRIC vs. MNtech Co | SEOJEON ELECTRIC vs. Leaders Technology Investment |
| Haesung DS vs. Inzi Display CoLtd | Haesung DS vs. Lotte Non Life Insurance | Haesung DS vs. GAMEVIL | Haesung DS vs. Dongbu Insurance 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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