Correlation Between Haesung DS and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Haesung DS and Daewoo SBI 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 Haesung DS and Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung DS Co and Daewoo SBI SPAC, you can compare the effects of market volatilities on Haesung DS and Daewoo SBI 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 Haesung DS with a short position of Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung DS and Daewoo SBI.
Diversification Opportunities for Haesung DS and Daewoo SBI
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haesung and Daewoo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Haesung DS Co and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC and Haesung DS 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 Haesung DS Co are associated (or correlated) with Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Haesung DS i.e., Haesung DS and Daewoo SBI go up and down completely randomly.
Pair Corralation between Haesung DS and Daewoo SBI
Assuming the 90 days trading horizon Haesung DS Co is expected to generate 1.62 times more return on investment than Daewoo SBI. However, Haesung DS is 1.62 times more volatile than Daewoo SBI SPAC. It trades about -0.03 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.06 per unit of risk. If you would invest 4,114,201 in Haesung DS Co on September 3, 2024 and sell it today you would lose (1,949,201) from holding Haesung DS Co or give up 47.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung DS Co vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Haesung DS |
| Daewoo SBI SPAC |
Haesung DS and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung DS and Daewoo SBI
The main advantage of trading using opposite Haesung DS and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung DS position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Haesung DS vs. Dongsin Engineering Construction | Haesung DS vs. Doosan Fuel Cell | Haesung DS vs. Daishin Balance 1 | Haesung DS vs. Total Soft Bank |
| Daewoo SBI vs. Daejoo Electronic Materials | Daewoo SBI vs. Mgame Corp | Daewoo SBI vs. Kakao Games Corp | Daewoo SBI vs. Iljin Materials 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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