Correlation Between Daishin Information and Korea Computer

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

By analyzing existing cross correlation between Daishin Information Communications and Korea Computer, you can compare the effects of market volatilities on Daishin Information and Korea Computer 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 Daishin Information with a short position of Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Korea Computer.

Diversification Opportunities for Daishin Information and Korea Computer

-0.37

Correlation Coefficient

Daishin Information  Korea Computer

Very good diversification

The 3 months correlation between Daishin and Korea is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Korea Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer and Daishin Information 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 Daishin Information Communications are associated (or correlated) with Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer has no effect on the direction of Daishin Information i.e., Daishin Information and Korea Computer go up and down completely randomly.

Pair Corralation between Daishin Information and Korea Computer

Assuming the 90 days trading horizon Daishin Information Communications is expected to under-perform the Korea Computer. In addition to that, Daishin Information is 1.89 times more volatile than Korea Computer. It trades about -0.05 of its total potential returns per unit of risk. Korea Computer is currently generating about 0.15 per unit of volatility. If you would invest  464,000  in Korea Computer on April 25, 2025 and sell it today you would earn a total of  54,000  from holding Korea Computer or generate 11.64% return on investment over 90 days.

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

Daishin Information Communicat  vs.  Korea Computer

Daishin Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daishin Information Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Korea Computer

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Korea Computer are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Korea Computer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Daishin Information and Korea Computer

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

The idea behind Daishin Information Communications and Korea Computer 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.