Correlation Between Wintec and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Wintec and Daishin Balance 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 Wintec and Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintec Co and Daishin Balance No8, you can compare the effects of market volatilities on Wintec and Daishin Balance 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 Wintec with a short position of Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintec and Daishin Balance.
Diversification Opportunities for Wintec and Daishin Balance
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wintec and Daishin is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Wintec Co and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 and Wintec 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 Wintec Co are associated (or correlated) with Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Wintec i.e., Wintec and Daishin Balance go up and down completely randomly.
Pair Corralation between Wintec and Daishin Balance
Assuming the 90 days trading horizon Wintec Co is expected to generate 1.28 times more return on investment than Daishin Balance. However, Wintec is 1.28 times more volatile than Daishin Balance No8. It trades about 0.03 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about -0.47 per unit of risk. If you would invest 279,000 in Wintec Co on August 27, 2024 and sell it today you would earn a total of 3,500 from holding Wintec Co or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintec Co vs. Daishin Balance No8
Performance |
| Timeline |
| Wintec |
| Daishin Balance No8 |
Wintec and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintec and Daishin Balance
The main advantage of trading using opposite Wintec and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintec position performs unexpectedly, Daishin Balance 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 Balance will offset losses from the drop in Daishin Balance's long position.| Wintec vs. Sempio Foods Co | Wintec vs. SungMoon Electronics Co | Wintec vs. Green Cross Medical | Wintec vs. ABCO Electronics Co |
| Daishin Balance vs. Pureun Mutual Savings | Daishin Balance vs. Coloray International Investment | Daishin Balance vs. Cuckoo Homesys Co | Daishin Balance vs. Sangsangin Investment Securities |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets |