Correlation Between Dream Security and Kyung In
Can any of the company-specific risk be diversified away by investing in both Dream Security and Kyung In 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 Kyung In 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Dream Security and Kyung In 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 Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and Kyung In.
Diversification Opportunities for Dream Security and Kyung In
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dream and Kyung is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security co and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Dream Security i.e., Dream Security and Kyung In go up and down completely randomly.
Pair Corralation between Dream Security and Kyung In
Assuming the 90 days trading horizon Dream Security co is expected to generate 1.7 times more return on investment than Kyung In. However, Dream Security is 1.7 times more volatile than Kyung In Synthetic Corp. It trades about -0.05 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.16 per unit of risk. If you would invest 327,500 in Dream Security co on August 25, 2024 and sell it today you would lose (12,000) from holding Dream Security co or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Security co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Dream Security co |
| Kyung In Synthetic |
Dream Security and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and Kyung In
The main advantage of trading using opposite Dream Security and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Dream Security vs. MetaLabs Co | Dream Security vs. Hanjoo Light Metal | Dream Security vs. Hannong Chemicals | Dream Security vs. Youngsin Metal Industrial |
| Kyung In vs. AptaBio Therapeutics | Kyung In vs. Daewoo SBI SPAC | Kyung In vs. Dream Security co | Kyung In vs. Microfriend |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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