Correlation Between Genolution and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Genolution and Duksan Hi 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 Genolution and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genolution and Duksan Hi Metal, you can compare the effects of market volatilities on Genolution and Duksan Hi 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 Genolution with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genolution and Duksan Hi.
Diversification Opportunities for Genolution and Duksan Hi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genolution and Duksan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Genolution and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Genolution 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 Genolution are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Genolution i.e., Genolution and Duksan Hi go up and down completely randomly.
Pair Corralation between Genolution and Duksan Hi
Assuming the 90 days trading horizon Genolution is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Genolution is 1.26 times less risky than Duksan Hi. The stock trades about -0.42 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 463,000 in Duksan Hi Metal on September 1, 2024 and sell it today you would lose (89,000) from holding Duksan Hi Metal or give up 19.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Genolution vs. Duksan Hi Metal
Performance |
| Timeline |
| Genolution |
| Duksan Hi Metal |
Genolution and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genolution and Duksan Hi
The main advantage of trading using opposite Genolution and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genolution position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Genolution vs. Duksan Hi Metal | Genolution vs. Shinsegae Information Communication | Genolution vs. Daesung Hi Tech Co | Genolution vs. Kukil Metal Co |
| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. PJ Metal Co | Duksan Hi vs. Dongbang Transport Logistics | Duksan Hi vs. Nasmedia 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 Stocks Directory module to find actively traded stocks across global markets.
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