Correlation Between Daishin Balance and Korea Real
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Korea Real 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 Daishin Balance and Korea Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Balance No8 and Korea Real Estate, you can compare the effects of market volatilities on Daishin Balance and Korea Real 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 Daishin Balance with a short position of Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Korea Real.
Diversification Opportunities for Daishin Balance and Korea Real
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daishin and Korea is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate and Daishin Balance 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 Daishin Balance No8 are associated (or correlated) with Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Daishin Balance i.e., Daishin Balance and Korea Real go up and down completely randomly.
Pair Corralation between Daishin Balance and Korea Real
Assuming the 90 days trading horizon Daishin Balance No8 is expected to generate 3.64 times more return on investment than Korea Real. However, Daishin Balance is 3.64 times more volatile than Korea Real Estate. It trades about 0.02 of its potential returns per unit of risk. Korea Real Estate is currently generating about -0.03 per unit of risk. If you would invest 398,000 in Daishin Balance No8 on August 27, 2024 and sell it today you would earn a total of 44,500 from holding Daishin Balance No8 or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance No8 vs. Korea Real Estate
Performance |
| Timeline |
| Daishin Balance No8 |
| Korea Real Estate |
Daishin Balance and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Korea Real
The main advantage of trading using opposite Daishin Balance and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Korea Real 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 Korea Real will offset losses from the drop in Korea Real's long position.| Daishin Balance vs. Pureun Mutual Savings | Daishin Balance vs. Coloray International Investment | Daishin Balance vs. Cuckoo Homesys Co | Daishin Balance vs. Sangsangin Investment Securities |
| Korea Real vs. Samsung Electronics Co | Korea Real vs. Samsung Electronics Co | Korea Real vs. LG Energy Solution | Korea Real vs. SK Hynix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |