Correlation Between DSC Investment and Han Kook
Can any of the company-specific risk be diversified away by investing in both DSC Investment and Han Kook 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 Han Kook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSC Investment and Han Kook Steel, you can compare the effects of market volatilities on DSC Investment and Han Kook 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 Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSC Investment and Han Kook.
Diversification Opportunities for DSC Investment and Han Kook
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DSC and Han is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DSC Investment and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel 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 Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of DSC Investment i.e., DSC Investment and Han Kook go up and down completely randomly.
Pair Corralation between DSC Investment and Han Kook
Assuming the 90 days trading horizon DSC Investment is expected to generate 0.84 times more return on investment than Han Kook. However, DSC Investment is 1.19 times less risky than Han Kook. It trades about -0.01 of its potential returns per unit of risk. Han Kook Steel is currently generating about -0.03 per unit of risk. If you would invest 383,014 in DSC Investment on October 14, 2024 and sell it today you would lose (93,014) from holding DSC Investment or give up 24.28% 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. Han Kook Steel
Performance |
| Timeline |
| DSC Investment |
| Han Kook Steel |
DSC Investment and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSC Investment and Han Kook
The main advantage of trading using opposite DSC Investment and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSC Investment position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| DSC Investment vs. Shinhan Inverse Silver | DSC Investment vs. Seoul Electronics Telecom | DSC Investment vs. Wireless Power Amplifier | DSC Investment vs. Ssangyong Information Communication |
| Han Kook vs. Hanjin Transportation Co | Han Kook vs. Sangsangin Investment Securities | Han Kook vs. DSC Investment | Han Kook vs. E Investment Development |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |