Correlation Between Dongbang Transport and Korea Real
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Korea Real 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 Korea Real 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 Korea Real Estate, you can compare the effects of market volatilities on Dongbang Transport and Korea Real 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 Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Korea Real.
Diversification Opportunities for Dongbang Transport and Korea Real
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongbang and Korea is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Korea Real go up and down completely randomly.
Pair Corralation between Dongbang Transport and Korea Real
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Korea Real. In addition to that, Dongbang Transport is 5.39 times more volatile than Korea Real Estate. It trades about -0.25 of its total potential returns per unit of risk. Korea Real Estate is currently generating about -0.16 per unit of volatility. If you would invest 100,500 in Korea Real Estate on November 7, 2024 and sell it today you would lose (700.00) from holding Korea Real Estate or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Korea Real Estate
Performance |
| Timeline |
| Dongbang Transport |
| Korea Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dongbang Transport and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Korea Real
The main advantage of trading using opposite Dongbang Transport and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Korea Real 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 Real will offset losses from the drop in Korea Real's long position.| Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Jahwa Electron | Dongbang Transport vs. Wonbang Tech Co |
| Korea Real vs. Korea Plasma Technology | Korea Real vs. Eagle Veterinary Technology | Korea Real vs. KG Eco Technology | Korea Real vs. Samick Musical Instruments |
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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