Correlation Between DukSan Neolux and PH Tech

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Can any of the company-specific risk be diversified away by investing in both DukSan Neolux and PH 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 DukSan Neolux and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DukSan Neolux CoLtd and PH Tech Co, you can compare the effects of market volatilities on DukSan Neolux and PH 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 DukSan Neolux with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of DukSan Neolux and PH Tech.

Diversification Opportunities for DukSan Neolux and PH Tech

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between DukSan and 239890 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding DukSan Neolux CoLtd and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and DukSan Neolux 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 DukSan Neolux CoLtd are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of DukSan Neolux i.e., DukSan Neolux and PH Tech go up and down completely randomly.

Pair Corralation between DukSan Neolux and PH Tech

Assuming the 90 days trading horizon DukSan Neolux CoLtd is expected to generate 0.81 times more return on investment than PH Tech. However, DukSan Neolux CoLtd is 1.24 times less risky than PH Tech. It trades about 0.02 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.01 per unit of risk. If you would invest  2,660,000  in DukSan Neolux CoLtd on November 6, 2024 and sell it today you would earn a total of  0.00  from holding DukSan Neolux CoLtd or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

DukSan Neolux CoLtd  vs.  PH Tech Co

 Performance 
       Timeline  
DukSan Neolux CoLtd 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in DukSan Neolux CoLtd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, DukSan Neolux is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
PH Tech 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PH Tech Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PH Tech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

DukSan Neolux and PH Tech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DukSan Neolux and PH Tech

The main advantage of trading using opposite DukSan Neolux and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DukSan Neolux position performs unexpectedly, PH 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 PH Tech will offset losses from the drop in PH Tech's long position.
The idea behind DukSan Neolux CoLtd and PH Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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