Correlation Between DAEDUCK ELECTRONICS and Okins Electronics
Can any of the company-specific risk be diversified away by investing in both DAEDUCK ELECTRONICS and Okins Electronics 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 Okins Electronics 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 Okins Electronics Co, you can compare the effects of market volatilities on DAEDUCK ELECTRONICS and Okins Electronics 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 Okins Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEDUCK ELECTRONICS and Okins Electronics.
Diversification Opportunities for DAEDUCK ELECTRONICS and Okins Electronics
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAEDUCK and Okins is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAEDUCK ELECTRONICS CoLtd and Okins Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okins Electronics 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 Okins Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okins Electronics has no effect on the direction of DAEDUCK ELECTRONICS i.e., DAEDUCK ELECTRONICS and Okins Electronics go up and down completely randomly.
Pair Corralation between DAEDUCK ELECTRONICS and Okins Electronics
Assuming the 90 days trading horizon DAEDUCK ELECTRONICS CoLtd is expected to generate 0.79 times more return on investment than Okins Electronics. However, DAEDUCK ELECTRONICS CoLtd is 1.27 times less risky than Okins Electronics. It trades about 0.09 of its potential returns per unit of risk. Okins Electronics Co is currently generating about -0.56 per unit of risk. If you would invest 799,000 in DAEDUCK ELECTRONICS CoLtd on August 30, 2024 and sell it today you would earn a total of 25,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 3.13% 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. Okins Electronics Co
Performance |
| Timeline |
| DAEDUCK ELECTRONICS CoLtd |
| Okins Electronics |
DAEDUCK ELECTRONICS and Okins Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEDUCK ELECTRONICS and Okins Electronics
The main advantage of trading using opposite DAEDUCK ELECTRONICS and Okins Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEDUCK ELECTRONICS position performs unexpectedly, Okins Electronics 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 Okins Electronics will offset losses from the drop in Okins Electronics' long position.| DAEDUCK ELECTRONICS vs. Busan Industrial Co | DAEDUCK ELECTRONICS vs. Busan Ind | DAEDUCK ELECTRONICS vs. Shinhan WTI Futures | DAEDUCK ELECTRONICS vs. Finebesteel |
| Okins Electronics vs. Daou Data Corp | Okins Electronics vs. Busan Industrial Co | Okins Electronics vs. Busan Ind | Okins Electronics vs. Shinhan WTI Futures |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |