Correlation Between Daishin Balance and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Kaonmedia 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 Kaonmedia 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 Kaonmedia Co, you can compare the effects of market volatilities on Daishin Balance and Kaonmedia 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 Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Kaonmedia.
Diversification Opportunities for Daishin Balance and Kaonmedia
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daishin and Kaonmedia is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia 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 Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Daishin Balance i.e., Daishin Balance and Kaonmedia go up and down completely randomly.
Pair Corralation between Daishin Balance and Kaonmedia
Assuming the 90 days trading horizon Daishin Balance No8 is expected to generate 1.61 times more return on investment than Kaonmedia. However, Daishin Balance is 1.61 times more volatile than Kaonmedia Co. It trades about 0.32 of its potential returns per unit of risk. Kaonmedia Co is currently generating about 0.09 per unit of risk. If you would invest 439,500 in Daishin Balance No8 on November 30, 2024 and sell it today you would earn a total of 231,500 from holding Daishin Balance No8 or generate 52.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Balance No8 vs. Kaonmedia Co
Performance |
| Timeline |
| Daishin Balance No8 |
| Kaonmedia |
Daishin Balance and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Kaonmedia
The main advantage of trading using opposite Daishin Balance and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Daishin Balance vs. Korea Investment Holdings | Daishin Balance vs. Sangsangin Investment Securities | Daishin Balance vs. Aju IB Investment | Daishin Balance vs. Hyosung Advanced Materials |
| Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. SK Hynix | Kaonmedia vs. HMM 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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