Correlation Between Dongjin Semichem and WONIK Materials
Can any of the company-specific risk be diversified away by investing in both Dongjin Semichem and WONIK Materials 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 WONIK Materials 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 WONIK Materials CoLtd, you can compare the effects of market volatilities on Dongjin Semichem and WONIK Materials 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 WONIK Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjin Semichem and WONIK Materials.
Diversification Opportunities for Dongjin Semichem and WONIK Materials
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongjin and WONIK is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dongjin Semichem Co and WONIK Materials CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WONIK Materials CoLtd 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 WONIK Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WONIK Materials CoLtd has no effect on the direction of Dongjin Semichem i.e., Dongjin Semichem and WONIK Materials go up and down completely randomly.
Pair Corralation between Dongjin Semichem and WONIK Materials
Assuming the 90 days trading horizon Dongjin Semichem Co is expected to under-perform the WONIK Materials. In addition to that, Dongjin Semichem is 1.23 times more volatile than WONIK Materials CoLtd. It trades about -0.02 of its total potential returns per unit of risk. WONIK Materials CoLtd is currently generating about 0.02 per unit of volatility. If you would invest 1,804,229 in WONIK Materials CoLtd on October 17, 2024 and sell it today you would earn a total of 9,771 from holding WONIK Materials CoLtd or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjin Semichem Co vs. WONIK Materials CoLtd
Performance |
| Timeline |
| Dongjin Semichem |
| WONIK Materials CoLtd |
Dongjin Semichem and WONIK Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjin Semichem and WONIK Materials
The main advantage of trading using opposite Dongjin Semichem and WONIK Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjin Semichem position performs unexpectedly, WONIK Materials 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 WONIK Materials will offset losses from the drop in WONIK Materials' long position.| Dongjin Semichem vs. Wonik Ips Co | Dongjin Semichem vs. Nepes | Dongjin Semichem vs. LEENO Industrial | Dongjin Semichem vs. LF Co |
| WONIK Materials vs. Soulbrain Holdings Co | WONIK Materials vs. Wonik Ips Co | WONIK Materials vs. TES Co | WONIK Materials vs. Suprema |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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