Correlation Between BGF Retail and Daishin Information
Can any of the company-specific risk be diversified away by investing in both BGF Retail and Daishin Information 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 BGF Retail and Daishin Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and Daishin Information Communications, you can compare the effects of market volatilities on BGF Retail and Daishin Information 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 BGF Retail with a short position of Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and Daishin Information.
Diversification Opportunities for BGF Retail and Daishin Information
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGF and Daishin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information and BGF Retail 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 BGF Retail Co are associated (or correlated) with Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of BGF Retail i.e., BGF Retail and Daishin Information go up and down completely randomly.
Pair Corralation between BGF Retail and Daishin Information
Assuming the 90 days trading horizon BGF Retail Co is expected to under-perform the Daishin Information. In addition to that, BGF Retail is 1.37 times more volatile than Daishin Information Communications. It trades about -0.08 of its total potential returns per unit of risk. Daishin Information Communications is currently generating about 0.01 per unit of volatility. If you would invest 86,500 in Daishin Information Communications on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Daishin Information Communications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. Daishin Information Communicat
Performance |
| Timeline |
| BGF Retail |
| Daishin Information |
BGF Retail and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and Daishin Information
The main advantage of trading using opposite BGF Retail and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information's long position.| BGF Retail vs. Korea Real Estate | BGF Retail vs. Korea Ratings Co | BGF Retail vs. IQuest Co | BGF Retail vs. Wonbang Tech Co |
| Daishin Information vs. Samyung Trading Co | Daishin Information vs. DSC Investment | Daishin Information vs. Atinum Investment Co | Daishin Information vs. EBEST 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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