Correlation Between LB Investment and Daishin Information
Can any of the company-specific risk be diversified away by investing in both LB Investment 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 LB Investment and Daishin Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Investment and Daishin Information Communications, you can compare the effects of market volatilities on LB Investment 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 LB Investment with a short position of Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Investment and Daishin Information.
Diversification Opportunities for LB Investment and Daishin Information
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 309960 and Daishin is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding LB Investment and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information and LB Investment 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 LB Investment 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 LB Investment i.e., LB Investment and Daishin Information go up and down completely randomly.
Pair Corralation between LB Investment and Daishin Information
Assuming the 90 days trading horizon LB Investment is expected to generate 0.51 times more return on investment than Daishin Information. However, LB Investment is 1.95 times less risky than Daishin Information. It trades about -0.11 of its potential returns per unit of risk. Daishin Information Communications is currently generating about -0.07 per unit of risk. If you would invest 318,500 in LB Investment on November 3, 2024 and sell it today you would lose (8,500) from holding LB Investment or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LB Investment vs. Daishin Information Communicat
Performance |
| Timeline |
| LB Investment |
| Daishin Information |
LB Investment and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Investment and Daishin Information
The main advantage of trading using opposite LB Investment and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Investment 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.| LB Investment vs. CG Hi Tech | LB Investment vs. Jahwa Electronics Co | LB Investment vs. Samji Electronics Co | LB Investment vs. Samyoung Electronics Co |
| Daishin Information vs. NICE Information Service | Daishin Information vs. Samlip General Foods | Daishin Information vs. DataSolution | Daishin Information vs. Daou Data 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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