Correlation Between DukSan Neolux and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both DukSan Neolux and Daishin Balance 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 Daishin Balance 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 Daishin Balance No, you can compare the effects of market volatilities on DukSan Neolux and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of DukSan Neolux and Daishin Balance.
Diversification Opportunities for DukSan Neolux and Daishin Balance
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DukSan and Daishin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DukSan Neolux CoLtd and Daishin Balance No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No has no effect on the direction of DukSan Neolux i.e., DukSan Neolux and Daishin Balance go up and down completely randomly.
Pair Corralation between DukSan Neolux and Daishin Balance
Assuming the 90 days trading horizon DukSan Neolux CoLtd is expected to generate 1.26 times more return on investment than Daishin Balance. However, DukSan Neolux is 1.26 times more volatile than Daishin Balance No. It trades about -0.01 of its potential returns per unit of risk. Daishin Balance No is currently generating about -0.11 per unit of risk. If you would invest 2,835,000 in DukSan Neolux CoLtd on September 13, 2024 and sell it today you would lose (135,000) from holding DukSan Neolux CoLtd or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
DukSan Neolux CoLtd vs. Daishin Balance No
Performance |
| Timeline |
| DukSan Neolux CoLtd |
| Daishin Balance No |
DukSan Neolux and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DukSan Neolux and Daishin Balance
The main advantage of trading using opposite DukSan Neolux and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DukSan Neolux position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| DukSan Neolux vs. LG Chem | DukSan Neolux vs. Chunbo Co | DukSan Neolux vs. LIG ES SPAC | DukSan Neolux vs. Sukgyung AT Co |
| Daishin Balance vs. Shinhan Inverse Silver | Daishin Balance vs. Formetal Co | Daishin Balance vs. Heungkuk Metaltech CoLtd | Daishin Balance vs. Dongil Metal 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |