Correlation Between MohenzCoLtd and Dongsuh
Can any of the company-specific risk be diversified away by investing in both MohenzCoLtd and Dongsuh 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 MohenzCoLtd and Dongsuh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MohenzCoLtd and Dongsuh, you can compare the effects of market volatilities on MohenzCoLtd and Dongsuh 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 MohenzCoLtd with a short position of Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of MohenzCoLtd and Dongsuh.
Diversification Opportunities for MohenzCoLtd and Dongsuh
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MohenzCoLtd and Dongsuh is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MohenzCoLtd and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh and MohenzCoLtd 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 MohenzCoLtd are associated (or correlated) with Dongsuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsuh has no effect on the direction of MohenzCoLtd i.e., MohenzCoLtd and Dongsuh go up and down completely randomly.
Pair Corralation between MohenzCoLtd and Dongsuh
Assuming the 90 days trading horizon MohenzCoLtd is expected to under-perform the Dongsuh. But the stock apears to be less risky and, when comparing its historical volatility, MohenzCoLtd is 1.11 times less risky than Dongsuh. The stock trades about -0.02 of its potential returns per unit of risk. The Dongsuh is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,739,132 in Dongsuh on September 12, 2024 and sell it today you would earn a total of 1,105,868 from holding Dongsuh or generate 63.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MohenzCoLtd vs. Dongsuh
Performance |
| Timeline |
| MohenzCoLtd |
| Dongsuh |
MohenzCoLtd and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MohenzCoLtd and Dongsuh
The main advantage of trading using opposite MohenzCoLtd and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MohenzCoLtd position performs unexpectedly, Dongsuh 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 Dongsuh will offset losses from the drop in Dongsuh's long position.| MohenzCoLtd vs. LG Chemicals | MohenzCoLtd vs. POSCO Holdings | MohenzCoLtd vs. Hanwha Solutions | MohenzCoLtd vs. Lotte Chemical Corp |
| Dongsuh vs. Nable Communications | Dongsuh vs. Vitzro Tech Co | Dongsuh vs. Korea Information Communications | Dongsuh vs. ITM Semiconductor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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