Correlation Between Dongbang Transport and ECSTELECOM
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and ECSTELECOM 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 ECSTELECOM 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 ECSTELECOM Co, you can compare the effects of market volatilities on Dongbang Transport and ECSTELECOM 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 ECSTELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and ECSTELECOM.
Diversification Opportunities for Dongbang Transport and ECSTELECOM
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongbang and ECSTELECOM is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and ECSTELECOM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECSTELECOM 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 ECSTELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECSTELECOM has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and ECSTELECOM go up and down completely randomly.
Pair Corralation between Dongbang Transport and ECSTELECOM
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the ECSTELECOM. In addition to that, Dongbang Transport is 1.01 times more volatile than ECSTELECOM Co. It trades about -0.1 of its total potential returns per unit of risk. ECSTELECOM Co is currently generating about 0.11 per unit of volatility. If you would invest 279,500 in ECSTELECOM Co on August 24, 2024 and sell it today you would earn a total of 11,500 from holding ECSTELECOM Co or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. ECSTELECOM Co
Performance |
| Timeline |
| Dongbang Transport |
| ECSTELECOM |
Dongbang Transport and ECSTELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and ECSTELECOM
The main advantage of trading using opposite Dongbang Transport and ECSTELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, ECSTELECOM 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 ECSTELECOM will offset losses from the drop in ECSTELECOM's long position.| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
| ECSTELECOM vs. Busan Industrial Co | ECSTELECOM vs. Busan Ind | ECSTELECOM vs. Mirae Asset Daewoo | ECSTELECOM vs. UNISEM Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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