Correlation Between Daejung Chemicals and Green Cross
Can any of the company-specific risk be diversified away by investing in both Daejung Chemicals and Green Cross 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 Daejung Chemicals and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daejung Chemicals Metals and Green Cross Medical, you can compare the effects of market volatilities on Daejung Chemicals and Green Cross 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 Daejung Chemicals with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daejung Chemicals and Green Cross.
Diversification Opportunities for Daejung Chemicals and Green Cross
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daejung and Green is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Daejung Chemicals Metals and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and Daejung Chemicals 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 Daejung Chemicals Metals are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Daejung Chemicals i.e., Daejung Chemicals and Green Cross go up and down completely randomly.
Pair Corralation between Daejung Chemicals and Green Cross
Assuming the 90 days trading horizon Daejung Chemicals Metals is expected to under-perform the Green Cross. But the stock apears to be less risky and, when comparing its historical volatility, Daejung Chemicals Metals is 3.32 times less risky than Green Cross. The stock trades about -0.04 of its potential returns per unit of risk. The Green Cross Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 363,500 in Green Cross Medical on December 24, 2024 and sell it today you would earn a total of 27,000 from holding Green Cross Medical or generate 7.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Daejung Chemicals Metals vs. Green Cross Medical
Performance |
Timeline |
Daejung Chemicals Metals |
Green Cross Medical |
Daejung Chemicals and Green Cross Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Daejung Chemicals and Green Cross
The main advantage of trading using opposite Daejung Chemicals and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daejung Chemicals position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.Daejung Chemicals vs. Woorim Machinery Co | Daejung Chemicals vs. Pureun Mutual Savings | Daejung Chemicals vs. Atinum Investment Co | Daejung Chemicals vs. Sam Yang Foods |
Green Cross vs. Lotte Chilsung Beverage | Green Cross vs. Barunson Entertainment Arts | Green Cross vs. Nasmedia Co | Green Cross vs. MEDIANA CoLtd |
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
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |