Correlation Between Sempio Foods and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Sempio Foods and Duksan Hi 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 Sempio Foods and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sempio Foods Co and Duksan Hi Metal, you can compare the effects of market volatilities on Sempio Foods and Duksan Hi 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 Sempio Foods with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sempio Foods and Duksan Hi.
Diversification Opportunities for Sempio Foods and Duksan Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sempio and Duksan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sempio Foods Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Sempio Foods 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 Sempio Foods Co are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Sempio Foods i.e., Sempio Foods and Duksan Hi go up and down completely randomly.
Pair Corralation between Sempio Foods and Duksan Hi
Assuming the 90 days trading horizon Sempio Foods Co is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Sempio Foods Co is 1.21 times less risky than Duksan Hi. The stock trades about -0.26 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 379,000 in Duksan Hi Metal on October 26, 2024 and sell it today you would earn a total of 27,000 from holding Duksan Hi Metal or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sempio Foods Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Sempio Foods |
| Duksan Hi Metal |
Sempio Foods and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sempio Foods and Duksan Hi
The main advantage of trading using opposite Sempio Foods and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sempio Foods position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Sempio Foods vs. SM Entertainment Co | Sempio Foods vs. Chorokbaem Healthcare Co | Sempio Foods vs. ITM Semiconductor Co | Sempio Foods vs. Polaris Office Corp |
| Duksan Hi vs. Hannong Chemicals | Duksan Hi vs. SK Chemicals Co | Duksan Hi vs. Dongil Metal Co | Duksan Hi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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