Correlation Between Daishin Balance and IC Technology
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and IC Technology 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 IC Technology 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 IC Technology Co, you can compare the effects of market volatilities on Daishin Balance and IC Technology 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 IC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and IC Technology.
Diversification Opportunities for Daishin Balance and IC Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daishin and 052860 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and IC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IC Technology 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 IC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IC Technology has no effect on the direction of Daishin Balance i.e., Daishin Balance and IC Technology go up and down completely randomly.
Pair Corralation between Daishin Balance and IC Technology
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 0.69 times more return on investment than IC Technology. However, Daishin Balance 1 is 1.44 times less risky than IC Technology. It trades about -0.03 of its potential returns per unit of risk. IC Technology Co is currently generating about -0.06 per unit of risk. If you would invest 660,000 in Daishin Balance 1 on September 1, 2024 and sell it today you would lose (122,000) from holding Daishin Balance 1 or give up 18.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Daishin Balance 1 vs. IC Technology Co
Performance |
| Timeline |
| Daishin Balance 1 |
| IC Technology |
Daishin Balance and IC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and IC Technology
The main advantage of trading using opposite Daishin Balance and IC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, IC Technology 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 IC Technology will offset losses from the drop in IC Technology's long position.| Daishin Balance vs. INNOX Advanced Materials | Daishin Balance vs. LAKE MATERIALS LTD | Daishin Balance vs. Iljin Materials Co | Daishin Balance vs. TOPMATERIAL LTD |
| IC Technology vs. Dongsin Engineering Construction | IC Technology vs. Doosan Fuel Cell | IC Technology vs. Daishin Balance 1 | IC Technology vs. Total Soft Bank |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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