Correlation Between Duksan Hi and Bookook Steel
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Bookook Steel 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 Duksan Hi and Bookook Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Bookook Steel, you can compare the effects of market volatilities on Duksan Hi and Bookook Steel 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 Duksan Hi with a short position of Bookook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Bookook Steel.
Diversification Opportunities for Duksan Hi and Bookook Steel
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and Bookook is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Bookook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bookook Steel and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Bookook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bookook Steel has no effect on the direction of Duksan Hi i.e., Duksan Hi and Bookook Steel go up and down completely randomly.
Pair Corralation between Duksan Hi and Bookook Steel
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 1.69 times more return on investment than Bookook Steel. However, Duksan Hi is 1.69 times more volatile than Bookook Steel. It trades about -0.08 of its potential returns per unit of risk. Bookook Steel is currently generating about -0.13 per unit of risk. If you would invest 767,000 in Duksan Hi Metal on September 25, 2024 and sell it today you would lose (375,000) from holding Duksan Hi Metal or give up 48.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Duksan Hi Metal vs. Bookook Steel
Performance |
Timeline |
Duksan Hi Metal |
Bookook Steel |
Duksan Hi and Bookook Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duksan Hi and Bookook Steel
The main advantage of trading using opposite Duksan Hi and Bookook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Bookook Steel 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 Bookook Steel will offset losses from the drop in Bookook Steel's long position.Duksan Hi vs. Home Center Holdings | Duksan Hi vs. Woori Technology | Duksan Hi vs. Hwangkum Steel Technology | Duksan Hi vs. Global Standard Technology |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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