Correlation Between DAEDUCK ELECTRONICS and Automobile
Can any of the company-specific risk be diversified away by investing in both DAEDUCK ELECTRONICS and Automobile 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 DAEDUCK ELECTRONICS and Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEDUCK ELECTRONICS CoLtd and Automobile Pc, you can compare the effects of market volatilities on DAEDUCK ELECTRONICS and Automobile 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 DAEDUCK ELECTRONICS with a short position of Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEDUCK ELECTRONICS and Automobile.
Diversification Opportunities for DAEDUCK ELECTRONICS and Automobile
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAEDUCK and Automobile is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding DAEDUCK ELECTRONICS CoLtd and Automobile Pc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automobile Pc and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS CoLtd are associated (or correlated) with Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automobile Pc has no effect on the direction of DAEDUCK ELECTRONICS i.e., DAEDUCK ELECTRONICS and Automobile go up and down completely randomly.
Pair Corralation between DAEDUCK ELECTRONICS and Automobile
Assuming the 90 days trading horizon DAEDUCK ELECTRONICS CoLtd is expected to generate 0.34 times more return on investment than Automobile. However, DAEDUCK ELECTRONICS CoLtd is 2.94 times less risky than Automobile. It trades about 0.08 of its potential returns per unit of risk. Automobile Pc is currently generating about 0.01 per unit of risk. If you would invest 805,000 in DAEDUCK ELECTRONICS CoLtd on August 31, 2024 and sell it today you would earn a total of 19,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAEDUCK ELECTRONICS CoLtd vs. Automobile Pc
Performance |
| Timeline |
| DAEDUCK ELECTRONICS CoLtd |
| Automobile Pc |
DAEDUCK ELECTRONICS and Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEDUCK ELECTRONICS and Automobile
The main advantage of trading using opposite DAEDUCK ELECTRONICS and Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEDUCK ELECTRONICS position performs unexpectedly, Automobile 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 Automobile will offset losses from the drop in Automobile's long position.| DAEDUCK ELECTRONICS vs. SK IE Technology | DAEDUCK ELECTRONICS vs. Solus Advanced Materials | DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co |
| Automobile vs. LG Display | Automobile vs. Hyundai Motor | Automobile vs. Hyundai Motor Co | Automobile vs. Hyundai Motor 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |