Correlation Between Daishin Balance and SOOSAN INT
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and SOOSAN INT 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 Daishin Balance and SOOSAN INT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Balance 1 and SOOSAN INT Co, you can compare the effects of market volatilities on Daishin Balance and SOOSAN INT 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 Daishin Balance with a short position of SOOSAN INT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and SOOSAN INT.
Diversification Opportunities for Daishin Balance and SOOSAN INT
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daishin and SOOSAN is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and SOOSAN INT Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOOSAN INT and Daishin Balance 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 Daishin Balance 1 are associated (or correlated) with SOOSAN INT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOOSAN INT has no effect on the direction of Daishin Balance i.e., Daishin Balance and SOOSAN INT go up and down completely randomly.
Pair Corralation between Daishin Balance and SOOSAN INT
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 1.61 times more return on investment than SOOSAN INT. However, Daishin Balance is 1.61 times more volatile than SOOSAN INT Co. It trades about -0.06 of its potential returns per unit of risk. SOOSAN INT Co is currently generating about -0.19 per unit of risk. If you would invest 602,000 in Daishin Balance 1 on September 2, 2024 and sell it today you would lose (64,000) from holding Daishin Balance 1 or give up 10.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance 1 vs. SOOSAN INT Co
Performance |
| Timeline |
| Daishin Balance 1 |
| SOOSAN INT |
Daishin Balance and SOOSAN INT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and SOOSAN INT
The main advantage of trading using opposite Daishin Balance and SOOSAN INT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, SOOSAN INT 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 SOOSAN INT will offset losses from the drop in SOOSAN INT's long position.| Daishin Balance vs. Pan Entertainment Co | Daishin Balance vs. Korea Air Svc | Daishin Balance vs. Air Busan Co | Daishin Balance vs. Mgame Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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