Correlation Between Lotte Data and DoubleU Games
Can any of the company-specific risk be diversified away by investing in both Lotte Data 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 Lotte Data and DoubleU Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Data Communication and DoubleU Games Co, you can compare the effects of market volatilities on Lotte Data 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 Lotte Data with a short position of DoubleU Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Data and DoubleU Games.
Diversification Opportunities for Lotte Data and DoubleU Games
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lotte and DoubleU is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Data Communication and DoubleU Games Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleU Games and Lotte Data 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 Lotte Data Communication 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 Lotte Data i.e., Lotte Data and DoubleU Games go up and down completely randomly.
Pair Corralation between Lotte Data and DoubleU Games
Assuming the 90 days trading horizon Lotte Data Communication is expected to under-perform the DoubleU Games. In addition to that, Lotte Data is 1.58 times more volatile than DoubleU Games Co. It trades about 0.0 of its total potential returns per unit of risk. DoubleU Games Co is currently generating about 0.01 per unit of volatility. If you would invest 4,900,000 in DoubleU Games Co on October 18, 2024 and sell it today you would earn a total of 80,000 from holding DoubleU Games Co or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Data Communication vs. DoubleU Games Co
Performance |
| Timeline |
| Lotte Data Communication |
| DoubleU Games |
Lotte Data and DoubleU Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Data and DoubleU Games
The main advantage of trading using opposite Lotte Data and DoubleU Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Data 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.| Lotte Data vs. FoodNamoo | Lotte Data vs. Daejung Chemicals Metals | Lotte Data vs. Dongil Metal Co | Lotte Data vs. Hanjoo Light Metal |
| DoubleU Games vs. HB Technology TD | DoubleU Games vs. Lotte Data Communication | DoubleU Games vs. Ssangyong Information Communication | DoubleU Games vs. Mobile Appliance |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |