Correlation Between Doosan Fuel and Sang A
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and Sang A 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 Sang A 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 Sang A Frontec CoLtd, you can compare the effects of market volatilities on Doosan Fuel and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and Sang A.
Diversification Opportunities for Doosan Fuel and Sang A
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doosan and Sang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and Sang A go up and down completely randomly.
Pair Corralation between Doosan Fuel and Sang A
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to generate 1.41 times more return on investment than Sang A. However, Doosan Fuel is 1.41 times more volatile than Sang A Frontec CoLtd. It trades about 0.0 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.03 per unit of risk. If you would invest 1,705,000 in Doosan Fuel Cell on September 25, 2024 and sell it today you would lose (26,000) from holding Doosan Fuel Cell or give up 1.52% 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. Sang A Frontec CoLtd
Performance |
| Timeline |
| Doosan Fuel Cell |
| Sang A Frontec |
Doosan Fuel and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and Sang A
The main advantage of trading using opposite Doosan Fuel and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Doosan Fuel vs. LS Electric | Doosan Fuel vs. Korea Ratings Co | Doosan Fuel vs. Humasis Co | Doosan Fuel vs. Korea Investment Holdings |
| Sang A vs. Sangshin Electronics Co | Sang A vs. Daewon Media Co | Sang A vs. FNC Entertainment Co | Sang A vs. Shinil Electronics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |