Correlation Between Daishin Balance and Sang A
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Sang A 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 Sang A 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 Sang A Frontec CoLtd, you can compare the effects of market volatilities on Daishin Balance and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Sang A.
Diversification Opportunities for Daishin Balance and Sang A
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Sang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Daishin Balance i.e., Daishin Balance and Sang A go up and down completely randomly.
Pair Corralation between Daishin Balance and Sang A
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 0.84 times more return on investment than Sang A. However, Daishin Balance 1 is 1.19 times less risky than Sang A. It trades about 0.14 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.22 per unit of risk. If you would invest 544,000 in Daishin Balance 1 on October 29, 2024 and sell it today you would earn a total of 23,000 from holding Daishin Balance 1 or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance 1 vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| Daishin Balance 1 |
| Sang A Frontec |
Daishin Balance and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Sang A
The main advantage of trading using opposite Daishin Balance and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Daishin Balance vs. Daishin Information Communications | Daishin Balance vs. Daechang Steel Co | Daishin Balance vs. INSUN Environmental New | Daishin Balance vs. Jeong Moon Information |
| Sang A vs. Hana Financial | Sang A vs. Lotte Non Life Insurance | Sang A vs. Korean Reinsurance Co | Sang A vs. Lotte Chilsung Beverage |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |