Correlation Between Dream Security and S Fuelcell
Can any of the company-specific risk be diversified away by investing in both Dream Security and S Fuelcell 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 S Fuelcell 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 S Fuelcell co, you can compare the effects of market volatilities on Dream Security and S Fuelcell 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 S Fuelcell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and S Fuelcell.
Diversification Opportunities for Dream Security and S Fuelcell
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dream and 288620 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security co and S Fuelcell co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Fuelcell co 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 S Fuelcell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Fuelcell co has no effect on the direction of Dream Security i.e., Dream Security and S Fuelcell go up and down completely randomly.
Pair Corralation between Dream Security and S Fuelcell
Assuming the 90 days trading horizon Dream Security co is expected to generate 1.06 times more return on investment than S Fuelcell. However, Dream Security is 1.06 times more volatile than S Fuelcell co. It trades about 0.05 of its potential returns per unit of risk. S Fuelcell co is currently generating about -0.27 per unit of risk. If you would invest 314,000 in Dream Security co on August 29, 2024 and sell it today you would earn a total of 11,500 from holding Dream Security co or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Security co vs. S Fuelcell co
Performance |
| Timeline |
| Dream Security co |
| S Fuelcell co |
Dream Security and S Fuelcell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and S Fuelcell
The main advantage of trading using opposite Dream Security and S Fuelcell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security position performs unexpectedly, S Fuelcell 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 S Fuelcell will offset losses from the drop in S Fuelcell's long position.| Dream Security vs. VAIV Co | Dream Security vs. FLITTO Inc | Dream Security vs. Innodep | Dream Security vs. WISE iTech Co |
| S Fuelcell vs. Ecopro BM Co | S Fuelcell vs. Sangsin Energy Display | S Fuelcell vs. Bosung Power Technology | S Fuelcell vs. APro 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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