Correlation Between Daishin Balance and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and Showbox Corp 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 Showbox Corp 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 Showbox Corp, you can compare the effects of market volatilities on Daishin Balance and Showbox Corp 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 Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Showbox Corp.
Diversification Opportunities for Daishin Balance and Showbox Corp
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Showbox is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp 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 Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of Daishin Balance i.e., Daishin Balance and Showbox Corp go up and down completely randomly.
Pair Corralation between Daishin Balance and Showbox Corp
Assuming the 90 days trading horizon Daishin Balance No8 is expected to under-perform the Showbox Corp. In addition to that, Daishin Balance is 1.2 times more volatile than Showbox Corp. It trades about -0.16 of its total potential returns per unit of risk. Showbox Corp is currently generating about -0.09 per unit of volatility. If you would invest 418,500 in Showbox Corp on September 13, 2024 and sell it today you would lose (32,500) from holding Showbox Corp or give up 7.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Daishin Balance No8 vs. Showbox Corp
Performance |
| Timeline |
| Daishin Balance No8 |
| Showbox Corp |
Daishin Balance and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Showbox Corp
The main advantage of trading using opposite Daishin Balance and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| Daishin Balance vs. DB Financial Investment | Daishin Balance vs. Dongil Metal Co | Daishin Balance vs. Lotte Non Life Insurance | Daishin Balance vs. KakaoBank Corp |
| Showbox Corp vs. Wireless Power Amplifier | Showbox Corp vs. Organic Special Pet | Showbox Corp vs. Shinsegae Food | Showbox Corp vs. Seoul Electronics Telecom |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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