Correlation Between DAEDUCK ELECTRONICS and Hurum
Can any of the company-specific risk be diversified away by investing in both DAEDUCK ELECTRONICS and Hurum 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 DAEDUCK ELECTRONICS and Hurum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEDUCK ELECTRONICS CoLtd and Hurum Co, you can compare the effects of market volatilities on DAEDUCK ELECTRONICS and Hurum 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 DAEDUCK ELECTRONICS with a short position of Hurum. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEDUCK ELECTRONICS and Hurum.
Diversification Opportunities for DAEDUCK ELECTRONICS and Hurum
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAEDUCK and Hurum is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding DAEDUCK ELECTRONICS CoLtd and Hurum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurum and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS CoLtd are associated (or correlated) with Hurum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurum has no effect on the direction of DAEDUCK ELECTRONICS i.e., DAEDUCK ELECTRONICS and Hurum go up and down completely randomly.
Pair Corralation between DAEDUCK ELECTRONICS and Hurum
Assuming the 90 days trading horizon DAEDUCK ELECTRONICS CoLtd is expected to generate 0.65 times more return on investment than Hurum. However, DAEDUCK ELECTRONICS CoLtd is 1.53 times less risky than Hurum. It trades about -0.02 of its potential returns per unit of risk. Hurum Co is currently generating about -0.03 per unit of risk. If you would invest 996,778 in DAEDUCK ELECTRONICS CoLtd on October 25, 2024 and sell it today you would lose (178,778) from holding DAEDUCK ELECTRONICS CoLtd or give up 17.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAEDUCK ELECTRONICS CoLtd vs. Hurum Co
Performance |
Timeline |
DAEDUCK ELECTRONICS CoLtd |
Hurum |
DAEDUCK ELECTRONICS and Hurum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DAEDUCK ELECTRONICS and Hurum
The main advantage of trading using opposite DAEDUCK ELECTRONICS and Hurum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEDUCK ELECTRONICS position performs unexpectedly, Hurum 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 Hurum will offset losses from the drop in Hurum's long position.DAEDUCK ELECTRONICS vs. CJ Seafood Corp | DAEDUCK ELECTRONICS vs. Industrial Bank | DAEDUCK ELECTRONICS vs. Dongil Metal Co | DAEDUCK ELECTRONICS vs. Sempio Foods Co |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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