Correlation Between Daishin Balance and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Daishin Balance and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Daewoo SBI.
Diversification Opportunities for Daishin Balance and Daewoo SBI
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daishin and Daewoo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Daishin Balance i.e., Daishin Balance and Daewoo SBI go up and down completely randomly.
Pair Corralation between Daishin Balance and Daewoo SBI
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 1.67 times more return on investment than Daewoo SBI. However, Daishin Balance is 1.67 times more volatile than Daewoo SBI SPAC. It trades about -0.04 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.06 per unit of risk. If you would invest 1,175,000 in Daishin Balance 1 on September 2, 2024 and sell it today you would lose (637,000) from holding Daishin Balance 1 or give up 54.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance 1 vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Daishin Balance 1 |
| Daewoo SBI SPAC |
Daishin Balance and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Daewoo SBI
The main advantage of trading using opposite Daishin Balance and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI'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 |
| Daewoo SBI vs. Woori Technology Investment | Daewoo SBI vs. DB Financial Investment | Daewoo SBI vs. Hwangkum Steel Technology | Daewoo SBI vs. Orbitech 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |