Correlation Between Dongjin Semichem and ENF Technology
Can any of the company-specific risk be diversified away by investing in both Dongjin Semichem and ENF Technology 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 ENF Technology 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 ENF Technology Co, you can compare the effects of market volatilities on Dongjin Semichem and ENF Technology 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 ENF Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjin Semichem and ENF Technology.
Diversification Opportunities for Dongjin Semichem and ENF Technology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongjin and ENF is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dongjin Semichem Co and ENF Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENF Technology 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 ENF Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENF Technology has no effect on the direction of Dongjin Semichem i.e., Dongjin Semichem and ENF Technology go up and down completely randomly.
Pair Corralation between Dongjin Semichem and ENF Technology
Assuming the 90 days trading horizon Dongjin Semichem is expected to generate 1.89 times less return on investment than ENF Technology. But when comparing it to its historical volatility, Dongjin Semichem Co is 1.23 times less risky than ENF Technology. It trades about 0.2 of its potential returns per unit of risk. ENF Technology Co is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,682,000 in ENF Technology Co on October 29, 2024 and sell it today you would earn a total of 363,000 from holding ENF Technology Co or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjin Semichem Co vs. ENF Technology Co
Performance |
| Timeline |
| Dongjin Semichem |
| ENF Technology |
Dongjin Semichem and ENF Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjin Semichem and ENF Technology
The main advantage of trading using opposite Dongjin Semichem and ENF Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjin Semichem position performs unexpectedly, ENF Technology 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 ENF Technology will offset losses from the drop in ENF Technology's long position.| Dongjin Semichem vs. Wonik Ips Co | Dongjin Semichem vs. Nepes | Dongjin Semichem vs. LEENO Industrial | Dongjin Semichem vs. LF Co |
| ENF Technology vs. Dongjin Semichem Co | ENF Technology vs. SS TECH | ENF Technology vs. Tokai Carbon Korea | ENF Technology vs. Soulbrain Holdings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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