Correlation Between Foodnamoo and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Foodnamoo and Daewoo SBI 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 Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and Daewoo SBI SPAC, you can compare the effects of market volatilities on Foodnamoo and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and Daewoo SBI.
Diversification Opportunities for Foodnamoo and Daewoo SBI
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Foodnamoo and Daewoo is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Foodnamoo i.e., Foodnamoo and Daewoo SBI go up and down completely randomly.
Pair Corralation between Foodnamoo and Daewoo SBI
Assuming the 90 days trading horizon Foodnamoo is expected to under-perform the Daewoo SBI. But the stock apears to be less risky and, when comparing its historical volatility, Foodnamoo is 1.66 times less risky than Daewoo SBI. The stock trades about -0.15 of its potential returns per unit of risk. The Daewoo SBI SPAC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 241,000 in Daewoo SBI SPAC on September 24, 2024 and sell it today you would earn a total of 39,000 from holding Daewoo SBI SPAC or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Foodnamoo |
| Daewoo SBI SPAC |
Foodnamoo and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and Daewoo SBI
The main advantage of trading using opposite Foodnamoo and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Foodnamoo vs. Newtree CoLtd | Foodnamoo vs. Pharmsville Co | Foodnamoo vs. Cherrybro coLtd | Foodnamoo vs. AnterogenCoLtd |
| Daewoo SBI vs. Foodnamoo | Daewoo SBI vs. Shinsegae Food | Daewoo SBI vs. Haitai Confectionery Foods | Daewoo SBI vs. KakaoBank Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |