Correlation Between Dongbang Transport and Nable Communications
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Nable Communications 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 Nable Communications 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 Nable Communications, you can compare the effects of market volatilities on Dongbang Transport and Nable Communications 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 Nable Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Nable Communications.
Diversification Opportunities for Dongbang Transport and Nable Communications
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongbang and Nable is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Nable Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nable Communications 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 Nable Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nable Communications has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Nable Communications go up and down completely randomly.
Pair Corralation between Dongbang Transport and Nable Communications
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to generate 2.89 times more return on investment than Nable Communications. However, Dongbang Transport is 2.89 times more volatile than Nable Communications. It trades about 0.03 of its potential returns per unit of risk. Nable Communications is currently generating about 0.0 per unit of risk. If you would invest 208,987 in Dongbang Transport Logistics on January 25, 2025 and sell it today you would earn a total of 43,013 from holding Dongbang Transport Logistics or generate 20.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Nable Communications
Performance |
| Timeline |
| Dongbang Transport |
| Nable Communications |
Dongbang Transport and Nable Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Nable Communications
The main advantage of trading using opposite Dongbang Transport and Nable Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Nable Communications 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 Nable Communications will offset losses from the drop in Nable Communications' long position.| Dongbang Transport vs. Daewon Media Co | Dongbang Transport vs. Cuckoo Electronics Co | Dongbang Transport vs. Samyoung Electronics Co | Dongbang Transport vs. Kaonmedia Co |
| Nable Communications vs. Display Tech Co | Nable Communications vs. Jeju Beer Co | Nable Communications vs. DB Insurance Co | Nable Communications vs. Samsung Life Insurance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |