Correlation Between Dongjin Semichem and Daesung Private
Can any of the company-specific risk be diversified away by investing in both Dongjin Semichem and Daesung Private 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 Dongjin Semichem and Daesung Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongjin Semichem Co and Daesung Private Equity, you can compare the effects of market volatilities on Dongjin Semichem and Daesung Private 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 Dongjin Semichem with a short position of Daesung Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjin Semichem and Daesung Private.
Diversification Opportunities for Dongjin Semichem and Daesung Private
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongjin and Daesung is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dongjin Semichem Co and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity and Dongjin Semichem 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 Dongjin Semichem Co are associated (or correlated) with Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Dongjin Semichem i.e., Dongjin Semichem and Daesung Private go up and down completely randomly.
Pair Corralation between Dongjin Semichem and Daesung Private
Assuming the 90 days trading horizon Dongjin Semichem Co is expected to generate 0.76 times more return on investment than Daesung Private. However, Dongjin Semichem Co is 1.32 times less risky than Daesung Private. It trades about -0.01 of its potential returns per unit of risk. Daesung Private Equity is currently generating about -0.02 per unit of risk. If you would invest 3,156,027 in Dongjin Semichem Co on September 3, 2024 and sell it today you would lose (971,027) from holding Dongjin Semichem Co or give up 30.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjin Semichem Co vs. Daesung Private Equity
Performance |
| Timeline |
| Dongjin Semichem |
| Daesung Private Equity |
Dongjin Semichem and Daesung Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjin Semichem and Daesung Private
The main advantage of trading using opposite Dongjin Semichem and Daesung Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjin Semichem position performs unexpectedly, Daesung Private 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 Daesung Private will offset losses from the drop in Daesung Private's long position.| Dongjin Semichem vs. Wonik Ips Co | Dongjin Semichem vs. Nepes | Dongjin Semichem vs. LEENO Industrial | Dongjin Semichem vs. LF Co |
| Daesung Private vs. Dongjin Semichem Co | Daesung Private vs. AhnLab Inc | Daesung Private vs. Posco ICT | Daesung Private vs. CJ ENM |
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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