Correlation Between Dream Security and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Dream Security and YeSUN Tech 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 YeSUN Tech 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 YeSUN Tech CoLtd, you can compare the effects of market volatilities on Dream Security and YeSUN Tech 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 YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and YeSUN Tech.
Diversification Opportunities for Dream Security and YeSUN Tech
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dream and YeSUN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security co and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd 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 YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Dream Security i.e., Dream Security and YeSUN Tech go up and down completely randomly.
Pair Corralation between Dream Security and YeSUN Tech
Assuming the 90 days trading horizon Dream Security co is expected to generate 0.94 times more return on investment than YeSUN Tech. However, Dream Security co is 1.06 times less risky than YeSUN Tech. It trades about 0.02 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.06 per unit of risk. If you would invest 287,000 in Dream Security co on September 3, 2024 and sell it today you would earn a total of 40,000 from holding Dream Security co or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Security co vs. YeSUN Tech CoLtd
Performance |
| Timeline |
| Dream Security co |
| YeSUN Tech CoLtd |
Dream Security and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and YeSUN Tech
The main advantage of trading using opposite Dream Security and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech's long position.| Dream Security vs. VAIV Co | Dream Security vs. FLITTO Inc | Dream Security vs. Innodep | Dream Security vs. WISE iTech Co |
| YeSUN Tech vs. Samji Electronics Co | YeSUN Tech vs. Sunny Electronics Corp | YeSUN Tech vs. LG Electronics | YeSUN Tech vs. Daeduck Electronics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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