Correlation Between Innometry and Daekyung Machinery
Can any of the company-specific risk be diversified away by investing in both Innometry and Daekyung Machinery 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 Innometry and Daekyung Machinery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Daekyung Machinery Engineering, you can compare the effects of market volatilities on Innometry and Daekyung Machinery 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 Innometry with a short position of Daekyung Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Daekyung Machinery.
Diversification Opportunities for Innometry and Daekyung Machinery
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innometry and Daekyung is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and Daekyung Machinery Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daekyung Machinery and Innometry 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 Innometry Co are associated (or correlated) with Daekyung Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daekyung Machinery has no effect on the direction of Innometry i.e., Innometry and Daekyung Machinery go up and down completely randomly.
Pair Corralation between Innometry and Daekyung Machinery
Assuming the 90 days trading horizon Innometry Co is expected to under-perform the Daekyung Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Innometry Co is 1.35 times less risky than Daekyung Machinery. The stock trades about -0.23 of its potential returns per unit of risk. The Daekyung Machinery Engineering is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 41,500 in Daekyung Machinery Engineering on August 25, 2024 and sell it today you would earn a total of 11,000 from holding Daekyung Machinery Engineering or generate 26.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Daekyung Machinery Engineering
Performance |
| Timeline |
| Innometry |
| Daekyung Machinery |
Innometry and Daekyung Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Daekyung Machinery
The main advantage of trading using opposite Innometry and Daekyung Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, Daekyung Machinery 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 Daekyung Machinery will offset losses from the drop in Daekyung Machinery's long position.| Innometry vs. Daejoo Electronic Materials | Innometry vs. Parksystems Corp | Innometry vs. BH Co | Innometry vs. Partron Co |
| Daekyung Machinery vs. AptaBio Therapeutics | Daekyung Machinery vs. Daewoo SBI SPAC | Daekyung Machinery vs. Dream Security co | Daekyung Machinery vs. Microfriend |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |