Correlation Between Daishin Balance and Samjin LND
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Samjin LND 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 Samjin LND 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 Samjin LND Co, you can compare the effects of market volatilities on Daishin Balance and Samjin LND 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 Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Samjin LND.
Diversification Opportunities for Daishin Balance and Samjin LND
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Daishin and Samjin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND 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 Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of Daishin Balance i.e., Daishin Balance and Samjin LND go up and down completely randomly.
Pair Corralation between Daishin Balance and Samjin LND
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 0.91 times more return on investment than Samjin LND. However, Daishin Balance 1 is 1.1 times less risky than Samjin LND. It trades about -0.05 of its potential returns per unit of risk. Samjin LND Co is currently generating about -0.24 per unit of risk. If you would invest 574,000 in Daishin Balance 1 on September 12, 2024 and sell it today you would lose (55,000) from holding Daishin Balance 1 or give up 9.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance 1 vs. Samjin LND Co
Performance |
| Timeline |
| Daishin Balance 1 |
| Samjin LND |
Daishin Balance and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Samjin LND
The main advantage of trading using opposite Daishin Balance and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| Daishin Balance vs. JC Chemical Co | Daishin Balance vs. KyungIn Electronics Co | Daishin Balance vs. Dongnam Chemical Co | Daishin Balance vs. Kukdo Chemical Co |
| Samjin LND vs. Clean Science co | Samjin LND vs. CU Medical Systems | Samjin LND vs. Korean Air Lines | Samjin LND vs. Nice Information Telecommunication |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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