Correlation Between Daesung Private and Gs Retail

Can any of the company-specific risk be diversified away by investing in both Daesung Private and Gs Retail 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 Daesung Private and Gs Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Daesung Private Equity and Gs Retail, you can compare the effects of market volatilities on Daesung Private and Gs Retail 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 Daesung Private with a short position of Gs Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Private and Gs Retail.

Diversification Opportunities for Daesung Private and Gs Retail

0.0

Correlation Coefficient

Daesung Private  Gs Retail

Pay attention - limited upside

The 3 months correlation between Daesung and 007070 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Private Equity and Gs Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gs Retail and Daesung Private 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 Daesung Private Equity are associated (or correlated) with Gs Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gs Retail has no effect on the direction of Daesung Private i.e., Daesung Private and Gs Retail go up and down completely randomly.

Pair Corralation between Daesung Private and Gs Retail

If you would invest (100.00) in Gs Retail on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Gs Retail or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Daesung Private Equity  vs.  Gs Retail

Daesung Private Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daesung Private Equity has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Daesung Private is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gs Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gs Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Gs Retail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Daesung Private and Gs Retail

The main advantage of trading using opposite Daesung Private and Gs Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Private position performs unexpectedly, Gs Retail 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 Gs Retail will offset losses from the drop in Gs Retail's long position.

The idea behind Daesung Private Equity and Gs Retail pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.