Correlation Between CU Tech and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both CU Tech and Daishin Balance 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 CU Tech and Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Tech Corp and Daishin Balance No, you can compare the effects of market volatilities on CU Tech and Daishin Balance 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 CU Tech with a short position of Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Tech and Daishin Balance.
Diversification Opportunities for CU Tech and Daishin Balance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 376290 and Daishin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CU Tech Corp and Daishin Balance No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No and CU Tech 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 CU Tech Corp are associated (or correlated) with Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No has no effect on the direction of CU Tech i.e., CU Tech and Daishin Balance go up and down completely randomly.
Pair Corralation between CU Tech and Daishin Balance
Assuming the 90 days trading horizon CU Tech Corp is expected to generate 0.86 times more return on investment than Daishin Balance. However, CU Tech Corp is 1.16 times less risky than Daishin Balance. It trades about 0.1 of its potential returns per unit of risk. Daishin Balance No is currently generating about -0.06 per unit of risk. If you would invest 295,000 in CU Tech Corp on October 20, 2024 and sell it today you would earn a total of 6,000 from holding CU Tech Corp or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Tech Corp vs. Daishin Balance No
Performance |
| Timeline |
| CU Tech Corp |
| Daishin Balance No |
CU Tech and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Tech and Daishin Balance
The main advantage of trading using opposite CU Tech and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Tech position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| CU Tech vs. Pureun Mutual Savings | CU Tech vs. Digital Imaging Technology | CU Tech vs. Woori Financial Group | CU Tech vs. InfoBank |
| Daishin Balance vs. LG Chem | Daishin Balance vs. Chunbo Co | Daishin Balance vs. DukSan Neolux CoLtd | Daishin Balance vs. Hyosung Chemical Corp |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| 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 | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |