Correlation Between ASTORY CoLtd and Doosan Fuel
Can any of the company-specific risk be diversified away by investing in both ASTORY CoLtd and Doosan Fuel 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 ASTORY CoLtd and Doosan Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTORY CoLtd and Doosan Fuel Cell, you can compare the effects of market volatilities on ASTORY CoLtd and Doosan Fuel 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 ASTORY CoLtd with a short position of Doosan Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORY CoLtd and Doosan Fuel.
Diversification Opportunities for ASTORY CoLtd and Doosan Fuel
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASTORY and Doosan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ASTORY CoLtd and Doosan Fuel Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan Fuel Cell and ASTORY CoLtd 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 ASTORY CoLtd are associated (or correlated) with Doosan Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan Fuel Cell has no effect on the direction of ASTORY CoLtd i.e., ASTORY CoLtd and Doosan Fuel go up and down completely randomly.
Pair Corralation between ASTORY CoLtd and Doosan Fuel
Assuming the 90 days trading horizon ASTORY CoLtd is expected to under-perform the Doosan Fuel. But the stock apears to be less risky and, when comparing its historical volatility, ASTORY CoLtd is 1.15 times less risky than Doosan Fuel. The stock trades about -0.09 of its potential returns per unit of risk. The Doosan Fuel Cell is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,255,000 in Doosan Fuel Cell on September 2, 2024 and sell it today you would lose (1,409,000) from holding Doosan Fuel Cell or give up 43.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTORY CoLtd vs. Doosan Fuel Cell
Performance |
| Timeline |
| ASTORY CoLtd |
| Doosan Fuel Cell |
ASTORY CoLtd and Doosan Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTORY CoLtd and Doosan Fuel
The main advantage of trading using opposite ASTORY CoLtd and Doosan Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTORY CoLtd position performs unexpectedly, Doosan Fuel 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 Doosan Fuel will offset losses from the drop in Doosan Fuel's long position.| ASTORY CoLtd vs. Hyundai Home Shopping | ASTORY CoLtd vs. Korean Drug Co | ASTORY CoLtd vs. Hankook Furniture Co | ASTORY CoLtd vs. Dongbang Transport Logistics |
| Doosan Fuel vs. SK Chemicals Co | Doosan Fuel vs. ECSTELECOM Co | Doosan Fuel vs. Digital Power Communications | Doosan Fuel vs. Miwon Chemicals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |