Correlation Between Doosan Fuel and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and Intellian Technologies 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 Intellian Technologies 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 Intellian Technologies, you can compare the effects of market volatilities on Doosan Fuel and Intellian Technologies 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 Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and Intellian Technologies.
Diversification Opportunities for Doosan Fuel and Intellian Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doosan and Intellian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies 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 Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and Intellian Technologies go up and down completely randomly.
Pair Corralation between Doosan Fuel and Intellian Technologies
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to generate 1.04 times more return on investment than Intellian Technologies. However, Doosan Fuel is 1.04 times more volatile than Intellian Technologies. It trades about -0.03 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.03 per unit of risk. If you would invest 3,020,000 in Doosan Fuel Cell on August 31, 2024 and sell it today you would lose (1,152,000) from holding Doosan Fuel Cell or give up 38.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan Fuel Cell vs. Intellian Technologies
Performance |
| Timeline |
| Doosan Fuel Cell |
| Intellian Technologies |
Doosan Fuel and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and Intellian Technologies
The main advantage of trading using opposite Doosan Fuel and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Doosan Fuel vs. LG Display Co | Doosan Fuel vs. Samick Musical Instruments | Doosan Fuel vs. SEOJEON ELECTRIC MACHINERY | Doosan Fuel vs. Tuksu Engineering ConstructionLtd |
| Intellian Technologies vs. Dongsin Engineering Construction | Intellian Technologies vs. Doosan Fuel Cell | Intellian Technologies vs. Daishin Balance 1 | Intellian Technologies 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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