Correlation Between Daishin Balance and Genie Music
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Genie Music 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 Genie Music 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 Genie Music, you can compare the effects of market volatilities on Daishin Balance and Genie Music 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 Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Genie Music.
Diversification Opportunities for Daishin Balance and Genie Music
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daishin and Genie is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music 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 Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Daishin Balance i.e., Daishin Balance and Genie Music go up and down completely randomly.
Pair Corralation between Daishin Balance and Genie Music
Assuming the 90 days trading horizon Daishin Balance No8 is expected to generate 1.9 times more return on investment than Genie Music. However, Daishin Balance is 1.9 times more volatile than Genie Music. It trades about 0.32 of its potential returns per unit of risk. Genie Music is currently generating about 0.18 per unit of risk. If you would invest 411,500 in Daishin Balance No8 on October 11, 2024 and sell it today you would earn a total of 130,500 from holding Daishin Balance No8 or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance No8 vs. Genie Music
Performance |
| Timeline |
| Daishin Balance No8 |
| Genie Music |
Daishin Balance and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Genie Music
The main advantage of trading using opposite Daishin Balance and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| Daishin Balance vs. Shinhan Inverse Silver | Daishin Balance vs. FoodNamoo | Daishin Balance vs. TK Chemical | Daishin Balance vs. SH Energy Chemical |
| Genie Music vs. National Plastic Co | Genie Music vs. Shinil Electronics Co | Genie Music vs. Samji Electronics Co | Genie Music vs. Green Cross Medical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |