Correlation Between Daishin Balance and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on Daishin Balance and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and ASTORY CoLtd.
Diversification Opportunities for Daishin Balance and ASTORY CoLtd
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daishin and ASTORY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance 1 and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Daishin Balance i.e., Daishin Balance and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between Daishin Balance and ASTORY CoLtd
Assuming the 90 days trading horizon Daishin Balance 1 is expected to generate 1.22 times more return on investment than ASTORY CoLtd. However, Daishin Balance is 1.22 times more volatile than ASTORY CoLtd. It trades about -0.04 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about -0.09 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance 1 vs. ASTORY CoLtd
Performance |
| Timeline |
| Daishin Balance 1 |
| ASTORY CoLtd |
Daishin Balance and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and ASTORY CoLtd
The main advantage of trading using opposite Daishin Balance and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd'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 |
| ASTORY CoLtd vs. Hyundai Home Shopping | ASTORY CoLtd vs. Korean Drug Co | ASTORY CoLtd vs. Hankook Furniture Co | ASTORY CoLtd vs. Dongbang Transport Logistics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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