Correlation Between Incar Financial and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Duksan Hi 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 Incar Financial and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Duksan Hi Metal, you can compare the effects of market volatilities on Incar Financial and Duksan Hi 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 Incar Financial with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Duksan Hi.
Diversification Opportunities for Incar Financial and Duksan Hi
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Incar and Duksan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Incar Financial 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 Incar Financial Service are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Incar Financial i.e., Incar Financial and Duksan Hi go up and down completely randomly.
Pair Corralation between Incar Financial and Duksan Hi
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 1.25 times more return on investment than Duksan Hi. However, Incar Financial is 1.25 times more volatile than Duksan Hi Metal. It trades about 0.06 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about 0.02 per unit of risk. If you would invest 558,000 in Incar Financial Service on November 3, 2024 and sell it today you would earn a total of 15,000 from holding Incar Financial Service or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incar Financial Service vs. Duksan Hi Metal
Performance |
| Timeline |
| Incar Financial Service |
| Duksan Hi Metal |
Incar Financial and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Duksan Hi
The main advantage of trading using opposite Incar Financial and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Incar Financial vs. BGF Retail Co | Incar Financial vs. Jeong Moon Information | Incar Financial vs. Digital Power Communications | Incar Financial vs. Echomarketing CoLtd |
| Duksan Hi vs. Korean Air Lines | Duksan Hi vs. Korea Computer | Duksan Hi vs. Jin Air Co | Duksan Hi vs. Ssangyong Information Communication |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |