Correlation Between Amogreentech and Daesung Private

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

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

Diversification Opportunities for Amogreentech and Daesung Private

0.09

Correlation Coefficient

Amogreentech  Daesung Private

Significant diversification

The 3 months correlation between Amogreentech and Daesung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity and Amogreentech 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 Amogreentech Co are associated (or correlated) with Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Amogreentech i.e., Amogreentech and Daesung Private go up and down completely randomly.

Pair Corralation between Amogreentech and Daesung Private

Assuming the 90 days trading horizon Amogreentech is expected to generate 1.03 times less return on investment than Daesung Private. In addition to that, Amogreentech is 1.23 times more volatile than Daesung Private Equity. It trades about 0.01 of its total potential returns per unit of risk. Daesung Private Equity is currently generating about 0.01 per unit of volatility. If you would invest  181,000  in Daesung Private Equity on December 28, 2024 and sell it today you would earn a total of  200.00  from holding Daesung Private Equity or generate 0.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

Amogreentech Co  vs.  Daesung Private Equity

Amogreentech

Risk-Adjusted Performance

Weak

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

Daesung Private Equity

Risk-Adjusted Performance

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.

Pair Trading with Amogreentech and Daesung Private

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

The idea behind Amogreentech Co and Daesung Private Equity 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.