Correlation Between DAEMO Engineering and COWINTECH
Can any of the company-specific risk be diversified away by investing in both DAEMO Engineering and COWINTECH 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 DAEMO Engineering and COWINTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEMO Engineering Co and COWINTECH Co, you can compare the effects of market volatilities on DAEMO Engineering and COWINTECH 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 DAEMO Engineering with a short position of COWINTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEMO Engineering and COWINTECH.
Diversification Opportunities for DAEMO Engineering and COWINTECH
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAEMO and COWINTECH is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DAEMO Engineering Co and COWINTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWINTECH and DAEMO Engineering 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 DAEMO Engineering Co are associated (or correlated) with COWINTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWINTECH has no effect on the direction of DAEMO Engineering i.e., DAEMO Engineering and COWINTECH go up and down completely randomly.
Pair Corralation between DAEMO Engineering and COWINTECH
Assuming the 90 days trading horizon DAEMO Engineering Co is expected to generate 0.78 times more return on investment than COWINTECH. However, DAEMO Engineering Co is 1.28 times less risky than COWINTECH. It trades about 0.08 of its potential returns per unit of risk. COWINTECH Co is currently generating about 0.05 per unit of risk. If you would invest 917,000 in DAEMO Engineering Co on August 25, 2024 and sell it today you would earn a total of 69,000 from holding DAEMO Engineering Co or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAEMO Engineering Co vs. COWINTECH Co
Performance |
| Timeline |
| DAEMO Engineering |
| COWINTECH |
DAEMO Engineering and COWINTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEMO Engineering and COWINTECH
The main advantage of trading using opposite DAEMO Engineering and COWINTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEMO Engineering position performs unexpectedly, COWINTECH 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 COWINTECH will offset losses from the drop in COWINTECH's long position.| DAEMO Engineering vs. Lotte Data Communication | DAEMO Engineering vs. Seoul Food Industrial | DAEMO Engineering vs. Kbi Metal Co | DAEMO Engineering vs. Taegu Broadcasting |
| COWINTECH vs. Korea Alcohol Industrial | COWINTECH vs. Daiyang Metal Co | COWINTECH vs. Namhwa Industrial Co | COWINTECH vs. Kbi Metal Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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