Correlation Between Doosan Fuel and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on Doosan Fuel and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and Haesung DS.
Diversification Opportunities for Doosan Fuel and Haesung DS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Doosan and Haesung is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and Haesung DS go up and down completely randomly.
Pair Corralation between Doosan Fuel and Haesung DS
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to generate 1.31 times more return on investment than Haesung DS. However, Doosan Fuel is 1.31 times more volatile than Haesung DS Co. It trades about 0.01 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.18 per unit of risk. If you would invest 1,961,000 in Doosan Fuel Cell on September 3, 2024 and sell it today you would lose (115,000) from holding Doosan Fuel Cell or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan Fuel Cell vs. Haesung DS Co
Performance |
| Timeline |
| Doosan Fuel Cell |
| Haesung DS |
Doosan Fuel and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and Haesung DS
The main advantage of trading using opposite Doosan Fuel and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| Doosan Fuel vs. Woorim Machinery Co | Doosan Fuel vs. Seohee Construction Co | Doosan Fuel vs. DB Financial Investment | Doosan Fuel vs. Golden Bridge Investment |
| Haesung DS vs. Dongsin Engineering Construction | Haesung DS vs. Doosan Fuel Cell | Haesung DS vs. Daishin Balance 1 | Haesung DS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |