Correlation Between Doosan Fuel and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and Showbox Corp 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 Showbox Corp 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 Showbox Corp, you can compare the effects of market volatilities on Doosan Fuel and Showbox Corp 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 Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and Showbox Corp.
Diversification Opportunities for Doosan Fuel and Showbox Corp
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Doosan and Showbox is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp 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 Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and Showbox Corp go up and down completely randomly.
Pair Corralation between Doosan Fuel and Showbox Corp
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to under-perform the Showbox Corp. In addition to that, Doosan Fuel is 1.24 times more volatile than Showbox Corp. It trades about -0.01 of its total potential returns per unit of risk. Showbox Corp is currently generating about 0.06 per unit of volatility. If you would invest 345,000 in Showbox Corp on August 29, 2024 and sell it today you would earn a total of 101,000 from holding Showbox Corp or generate 29.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan Fuel Cell vs. Showbox Corp
Performance |
| Timeline |
| Doosan Fuel Cell |
| Showbox Corp |
Doosan Fuel and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and Showbox Corp
The main advantage of trading using opposite Doosan Fuel and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| Doosan Fuel vs. LS Electric | Doosan Fuel vs. Busan Industrial Co | Doosan Fuel vs. Busan Ind | Doosan Fuel vs. Mirae Asset Daewoo |
| Showbox Corp vs. Shin Steel Co | Showbox Corp vs. Lindeman Asia Investment | Showbox Corp vs. Hanwha InvestmentSecurities Co | Showbox Corp vs. Atinum Investment 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |