Correlation Between Doosan Robotics and Playgram

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

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

Diversification Opportunities for Doosan Robotics and Playgram

-0.05

Correlation Coefficient

Doosan Robotics  Playgram

Good diversification

The 3 months correlation between Doosan and Playgram is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Robotics and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Doosan Robotics 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 Doosan Robotics are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Doosan Robotics i.e., Doosan Robotics and Playgram go up and down completely randomly.

Pair Corralation between Doosan Robotics and Playgram

Assuming the 90 days trading horizon Doosan Robotics is expected to under-perform the Playgram. In addition to that, Doosan Robotics is 1.09 times more volatile than Playgram Co. It trades about 0.0 of its total potential returns per unit of risk. Playgram Co is currently generating about 0.1 per unit of volatility. If you would invest  34,400  in Playgram Co on October 11, 2024 and sell it today you would earn a total of  5,500  from holding Playgram Co or generate 15.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Doosan Robotics  vs.  Playgram Co

Doosan Robotics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Doosan Robotics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Doosan Robotics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Playgram

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Playgram Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Playgram sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Doosan Robotics and Playgram

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

The idea behind Doosan Robotics and Playgram Co 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.