Correlation Between SKC and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both SKC and DAEDUCK ELECTRONICS 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 SKC and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKC Co and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on SKC and DAEDUCK ELECTRONICS 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 SKC with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKC and DAEDUCK ELECTRONICS.
Diversification Opportunities for SKC and DAEDUCK ELECTRONICS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SKC and DAEDUCK is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SKC Co and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and SKC 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 SKC Co are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of SKC i.e., SKC and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between SKC and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon SKC Co is expected to generate 1.89 times more return on investment than DAEDUCK ELECTRONICS. However, SKC is 1.89 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about 0.0 of its potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about -0.01 per unit of risk. If you would invest 15,464,700 in SKC Co on March 19, 2024 and sell it today you would lose (5,784,700) from holding SKC Co or give up 37.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.77% |
Values | Daily Returns |
SKC Co vs. DAEDUCK ELECTRONICS CoLtd
Performance |
Timeline |
SKC Co |
DAEDUCK ELECTRONICS CoLtd |
SKC and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SKC and DAEDUCK ELECTRONICS
The main advantage of trading using opposite SKC and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKC position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.SKC vs. POSCO Holdings | SKC vs. Korea Petro Chemical | SKC vs. Busan Industrial Co | SKC vs. Mirae Asset Daewoo |
DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co | DAEDUCK ELECTRONICS vs. Busan Industrial Co | DAEDUCK ELECTRONICS vs. Mirae Asset Daewoo |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Transaction History View history of all your transactions and understand their impact on performance |