Correlation Between Dongbang Transport and Dongsuh
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Dongsuh 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 Dongbang Transport and Dongsuh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Dongsuh, you can compare the effects of market volatilities on Dongbang Transport and Dongsuh 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 Dongbang Transport with a short position of Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Dongsuh.
Diversification Opportunities for Dongbang Transport and Dongsuh
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dongbang and Dongsuh is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh and Dongbang Transport 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 Dongbang Transport Logistics are associated (or correlated) with Dongsuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsuh has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Dongsuh go up and down completely randomly.
Pair Corralation between Dongbang Transport and Dongsuh
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Dongsuh. But the stock apears to be less risky and, when comparing its historical volatility, Dongbang Transport Logistics is 1.91 times less risky than Dongsuh. The stock trades about -0.11 of its potential returns per unit of risk. The Dongsuh is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,700,000 in Dongsuh on September 5, 2024 and sell it today you would earn a total of 270,000 from holding Dongsuh or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Dongsuh
Performance |
| Timeline |
| Dongbang Transport |
| Dongsuh |
Dongbang Transport and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Dongsuh
The main advantage of trading using opposite Dongbang Transport and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Dongsuh 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 Dongsuh will offset losses from the drop in Dongsuh's long position.| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
| Dongsuh vs. Golden Bridge Investment | Dongsuh vs. NH Investment Securities | Dongsuh vs. Chorokbaem Healthcare Co | Dongsuh vs. Dongbang Transport Logistics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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