Correlation Between Dongbang Transport and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Dongbang Transport and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Daewoo SBI.
Diversification Opportunities for Dongbang Transport and Daewoo SBI
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongbang and Daewoo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Daewoo SBI go up and down completely randomly.
Pair Corralation between Dongbang Transport and Daewoo SBI
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to generate 1.12 times more return on investment than Daewoo SBI. However, Dongbang Transport is 1.12 times more volatile than Daewoo SBI SPAC. It trades about 0.15 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.05 per unit of risk. If you would invest 210,000 in Dongbang Transport Logistics on December 4, 2024 and sell it today you would earn a total of 15,500 from holding Dongbang Transport Logistics or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Dongbang Transport |
| Daewoo SBI SPAC |
Dongbang Transport and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Daewoo SBI
The main advantage of trading using opposite Dongbang Transport and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Dongbang Transport vs. Daelim Trading Co | Dongbang Transport vs. Stic Investments | Dongbang Transport vs. Samyung Trading Co | Dongbang Transport vs. SS TECH |
| Daewoo SBI vs. SS TECH | Daewoo SBI vs. Hyundai Industrial Co | Daewoo SBI vs. Clean Science co | Daewoo SBI vs. Dongwoon Anatech 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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