Correlation Between DSC Investment and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both DSC Investment and Daelim Trading 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 DSC Investment and Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSC Investment and Daelim Trading Co, you can compare the effects of market volatilities on DSC Investment and Daelim Trading 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 DSC Investment with a short position of Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSC Investment and Daelim Trading.
Diversification Opportunities for DSC Investment and Daelim Trading
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DSC and Daelim is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding DSC Investment and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading and DSC Investment 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 DSC Investment are associated (or correlated) with Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of DSC Investment i.e., DSC Investment and Daelim Trading go up and down completely randomly.
Pair Corralation between DSC Investment and Daelim Trading
Assuming the 90 days trading horizon DSC Investment is expected to generate 1.38 times more return on investment than Daelim Trading. However, DSC Investment is 1.38 times more volatile than Daelim Trading Co. It trades about 0.0 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.03 per unit of risk. If you would invest 306,500 in DSC Investment on September 12, 2024 and sell it today you would lose (27,500) from holding DSC Investment or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSC Investment vs. Daelim Trading Co
Performance |
| Timeline |
| DSC Investment |
| Daelim Trading |
DSC Investment and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSC Investment and Daelim Trading
The main advantage of trading using opposite DSC Investment and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSC Investment position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| DSC Investment vs. Nh Investment And | DSC Investment vs. Hanwha InvestmentSecurities Co | DSC Investment vs. Solution Advanced Technology | DSC Investment vs. Busan Industrial Co |
| Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. SK Hynix | Daelim Trading vs. POSCO Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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