Correlation Between INNOX Advanced and DoubleU Games
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced and DoubleU Games 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 INNOX Advanced and DoubleU Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and DoubleU Games Co, you can compare the effects of market volatilities on INNOX Advanced and DoubleU Games 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 INNOX Advanced with a short position of DoubleU Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and DoubleU Games.
Diversification Opportunities for INNOX Advanced and DoubleU Games
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INNOX and DoubleU is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and DoubleU Games Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleU Games and INNOX Advanced 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 INNOX Advanced Materials are associated (or correlated) with DoubleU Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleU Games has no effect on the direction of INNOX Advanced i.e., INNOX Advanced and DoubleU Games go up and down completely randomly.
Pair Corralation between INNOX Advanced and DoubleU Games
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to under-perform the DoubleU Games. In addition to that, INNOX Advanced is 1.26 times more volatile than DoubleU Games Co. It trades about -0.02 of its total potential returns per unit of risk. DoubleU Games Co is currently generating about 0.03 per unit of volatility. If you would invest 4,245,000 in DoubleU Games Co on October 16, 2024 and sell it today you would earn a total of 720,000 from holding DoubleU Games Co or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. DoubleU Games Co
Performance |
| Timeline |
| INNOX Advanced Materials |
| DoubleU Games |
INNOX Advanced and DoubleU Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and DoubleU Games
The main advantage of trading using opposite INNOX Advanced and DoubleU Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced position performs unexpectedly, DoubleU Games 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 DoubleU Games will offset losses from the drop in DoubleU Games' long position.| INNOX Advanced vs. Seoul Semiconductor Co | INNOX Advanced vs. ITM Semiconductor Co | INNOX Advanced vs. Automobile Pc | INNOX Advanced vs. Digital Power Communications |
| DoubleU Games vs. Daejung Chemicals Metals | DoubleU Games vs. INNOX Advanced Materials | DoubleU Games vs. Hyundai Engineering Plastics | DoubleU Games vs. LS Materials |
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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