Correlation Between FoodNamoo and DukSan Neolux
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and DukSan Neolux 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 FoodNamoo and DukSan Neolux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and DukSan Neolux CoLtd, you can compare the effects of market volatilities on FoodNamoo and DukSan Neolux 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 FoodNamoo with a short position of DukSan Neolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and DukSan Neolux.
Diversification Opportunities for FoodNamoo and DukSan Neolux
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FoodNamoo and DukSan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and DukSan Neolux CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DukSan Neolux CoLtd and FoodNamoo 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 FoodNamoo are associated (or correlated) with DukSan Neolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DukSan Neolux CoLtd has no effect on the direction of FoodNamoo i.e., FoodNamoo and DukSan Neolux go up and down completely randomly.
Pair Corralation between FoodNamoo and DukSan Neolux
Assuming the 90 days trading horizon FoodNamoo is expected to under-perform the DukSan Neolux. But the stock apears to be less risky and, when comparing its historical volatility, FoodNamoo is 1.71 times less risky than DukSan Neolux. The stock trades about -0.04 of its potential returns per unit of risk. The DukSan Neolux CoLtd is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,660,000 in DukSan Neolux CoLtd on December 4, 2024 and sell it today you would earn a total of 425,000 from holding DukSan Neolux CoLtd or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FoodNamoo vs. DukSan Neolux CoLtd
Performance |
| Timeline |
| FoodNamoo |
| DukSan Neolux CoLtd |
FoodNamoo and DukSan Neolux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and DukSan Neolux
The main advantage of trading using opposite FoodNamoo and DukSan Neolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, DukSan Neolux 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 Neolux will offset losses from the drop in DukSan Neolux's long position.| FoodNamoo vs. LG Household Healthcare | FoodNamoo vs. Samyoung Electronics Co | FoodNamoo vs. Industrial Bank | FoodNamoo vs. Kbi Metal Co |
| DukSan Neolux vs. Sangsin Energy Display | DukSan Neolux vs. Lotte Data Communication | DukSan Neolux vs. Samlip General Foods | DukSan Neolux vs. FoodNamoo |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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