Correlation Between Doosan Robotics and Doosan Bobcat

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

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

Diversification Opportunities for Doosan Robotics and Doosan Bobcat

0.0

Correlation Coefficient

Doosan Robotics  Doosan Bobcat

Pay attention - limited upside

The 3 months correlation between Doosan and Doosan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Robotics and Doosan Bobcat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan Bobcat 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 Doosan Bobcat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan Bobcat has no effect on the direction of Doosan Robotics i.e., Doosan Robotics and Doosan Bobcat go up and down completely randomly.

Pair Corralation between Doosan Robotics and Doosan Bobcat

If you would invest  0.00  in Doosan Robotics on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Doosan Robotics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.84%
Values	Daily Returns

Doosan Robotics  vs.  Doosan Bobcat

Doosan Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

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

Doosan Bobcat

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doosan Bobcat are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Doosan Bobcat may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Doosan Robotics and Doosan Bobcat

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

The idea behind Doosan Robotics and Doosan Bobcat 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.