Correlation Between Doosan Fuel and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and Kginicis CoLtd 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 Doosan Fuel and Kginicis CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan Fuel Cell and Kginicis CoLtd, you can compare the effects of market volatilities on Doosan Fuel and Kginicis CoLtd 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 Doosan Fuel with a short position of Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and Kginicis CoLtd.
Diversification Opportunities for Doosan Fuel and Kginicis CoLtd
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doosan and Kginicis is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd and Doosan Fuel 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 Doosan Fuel Cell are associated (or correlated) with Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Doosan Fuel and Kginicis CoLtd
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to under-perform the Kginicis CoLtd. In addition to that, Doosan Fuel is 1.63 times more volatile than Kginicis CoLtd. It trades about -0.03 of its total potential returns per unit of risk. Kginicis CoLtd is currently generating about -0.02 per unit of volatility. If you would invest 1,193,956 in Kginicis CoLtd on September 2, 2024 and sell it today you would lose (271,956) from holding Kginicis CoLtd or give up 22.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan Fuel Cell vs. Kginicis CoLtd
Performance |
| Timeline |
| Doosan Fuel Cell |
| Kginicis CoLtd |
Doosan Fuel and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and Kginicis CoLtd
The main advantage of trading using opposite Doosan Fuel and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, Kginicis CoLtd 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Doosan Fuel vs. SK Chemicals Co | Doosan Fuel vs. ECSTELECOM Co | Doosan Fuel vs. Digital Power Communications | Doosan Fuel vs. Miwon Chemicals Co |
| Kginicis CoLtd vs. Dongsin Engineering Construction | Kginicis CoLtd vs. Doosan Fuel Cell | Kginicis CoLtd vs. Daishin Balance 1 | Kginicis CoLtd vs. Total Soft Bank |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |