Correlation Between Dream Security and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Dream Security and Tae Kyung 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 Dream Security and Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dream Security co and Tae Kyung Chemical, you can compare the effects of market volatilities on Dream Security and Tae Kyung 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 Dream Security with a short position of Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and Tae Kyung.
Diversification Opportunities for Dream Security and Tae Kyung
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dream and Tae is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security co and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical and Dream Security 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 Dream Security co are associated (or correlated) with Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Dream Security i.e., Dream Security and Tae Kyung go up and down completely randomly.
Pair Corralation between Dream Security and Tae Kyung
Assuming the 90 days trading horizon Dream Security co is expected to under-perform the Tae Kyung. In addition to that, Dream Security is 2.08 times more volatile than Tae Kyung Chemical. It trades about -0.1 of its total potential returns per unit of risk. Tae Kyung Chemical is currently generating about -0.03 per unit of volatility. If you would invest 1,122,000 in Tae Kyung Chemical on November 3, 2024 and sell it today you would lose (15,000) from holding Tae Kyung Chemical or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Security co vs. Tae Kyung Chemical
Performance |
| Timeline |
| Dream Security co |
| Tae Kyung Chemical |
Dream Security and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and Tae Kyung
The main advantage of trading using opposite Dream Security and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| Dream Security vs. Sangsangin Investment Securities | Dream Security vs. Duksan Hi Metal | Dream Security vs. E Investment Development | Dream Security vs. Daiyang Metal Co |
| Tae Kyung vs. INFINITT Healthcare Co | Tae Kyung vs. Ecoplastic | Tae Kyung vs. Green Cross Medical | Tae Kyung vs. Daejoo Electronic Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |