Correlation Between DSC Investment and SOOSAN INT
Can any of the company-specific risk be diversified away by investing in both DSC Investment and SOOSAN INT 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 SOOSAN INT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSC Investment and SOOSAN INT Co, you can compare the effects of market volatilities on DSC Investment and SOOSAN INT 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 SOOSAN INT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSC Investment and SOOSAN INT.
Diversification Opportunities for DSC Investment and SOOSAN INT
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DSC and SOOSAN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DSC Investment and SOOSAN INT Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOOSAN INT 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 SOOSAN INT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOOSAN INT has no effect on the direction of DSC Investment i.e., DSC Investment and SOOSAN INT go up and down completely randomly.
Pair Corralation between DSC Investment and SOOSAN INT
Assuming the 90 days trading horizon DSC Investment is expected to generate 0.75 times more return on investment than SOOSAN INT. However, DSC Investment is 1.34 times less risky than SOOSAN INT. It trades about 0.01 of its potential returns per unit of risk. SOOSAN INT Co is currently generating about -0.29 per unit of risk. If you would invest 286,500 in DSC Investment on August 29, 2024 and sell it today you would earn a total of 500.00 from holding DSC Investment or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSC Investment vs. SOOSAN INT Co
Performance |
| Timeline |
| DSC Investment |
| SOOSAN INT |
DSC Investment and SOOSAN INT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSC Investment and SOOSAN INT
The main advantage of trading using opposite DSC Investment and SOOSAN INT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSC Investment position performs unexpectedly, SOOSAN INT 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 SOOSAN INT will offset losses from the drop in SOOSAN INT's long position.| DSC Investment vs. Nh Investment And | DSC Investment vs. Hanwha InvestmentSecurities Co | DSC Investment vs. Busan Industrial Co | DSC Investment vs. Busan Ind |
| SOOSAN INT vs. DSC Investment | SOOSAN INT vs. Daewon Media Co | SOOSAN INT vs. Atinum Investment Co | SOOSAN INT vs. Sangsangin Investment Securities |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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