Correlation Between DSC Investment and Daewon Media
Can any of the company-specific risk be diversified away by investing in both DSC Investment and Daewon Media 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 Daewon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSC Investment and Daewon Media Co, you can compare the effects of market volatilities on DSC Investment and Daewon Media 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 Daewon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSC Investment and Daewon Media.
Diversification Opportunities for DSC Investment and Daewon Media
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DSC and Daewon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DSC Investment and Daewon Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewon Media 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 Daewon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewon Media has no effect on the direction of DSC Investment i.e., DSC Investment and Daewon Media go up and down completely randomly.
Pair Corralation between DSC Investment and Daewon Media
Assuming the 90 days trading horizon DSC Investment is expected to generate 1.57 times more return on investment than Daewon Media. However, DSC Investment is 1.57 times more volatile than Daewon Media Co. It trades about -0.01 of its potential returns per unit of risk. Daewon Media Co is currently generating about -0.1 per unit of risk. If you would invest 395,000 in DSC Investment on September 19, 2024 and sell it today you would lose (97,500) from holding DSC Investment or give up 24.68% 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. Daewon Media Co
Performance |
| Timeline |
| DSC Investment |
| Daewon Media |
DSC Investment and Daewon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSC Investment and Daewon Media
The main advantage of trading using opposite DSC Investment and Daewon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSC Investment position performs unexpectedly, Daewon Media 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 Daewon Media will offset losses from the drop in Daewon Media's long position.| DSC Investment vs. Hanwha InvestmentSecurities Co | DSC Investment vs. Solution Advanced Technology | DSC Investment vs. Busan Industrial Co | DSC Investment vs. Busan Ind |
| Daewon Media vs. Eugene Investment Securities | Daewon Media vs. DSC Investment | Daewon Media vs. Shinsegae Information Communication | Daewon Media vs. Daishin Information Communications |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |