Correlation Between Pureun Mutual and Dongjin Semichem
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Dongjin Semichem 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 Pureun Mutual and Dongjin Semichem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and Dongjin Semichem Co, you can compare the effects of market volatilities on Pureun Mutual and Dongjin Semichem 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 Pureun Mutual with a short position of Dongjin Semichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Dongjin Semichem.
Diversification Opportunities for Pureun Mutual and Dongjin Semichem
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pureun and Dongjin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Dongjin Semichem Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjin Semichem and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with Dongjin Semichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjin Semichem has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Dongjin Semichem go up and down completely randomly.
Pair Corralation between Pureun Mutual and Dongjin Semichem
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.98 times more return on investment than Dongjin Semichem. However, Pureun Mutual Savings is 1.02 times less risky than Dongjin Semichem. It trades about -0.01 of its potential returns per unit of risk. Dongjin Semichem Co is currently generating about -0.01 per unit of risk. If you would invest 1,173,752 in Pureun Mutual Savings on September 12, 2024 and sell it today you would lose (325,752) from holding Pureun Mutual Savings or give up 27.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Dongjin Semichem Co
Performance |
| Timeline |
| Pureun Mutual Savings |
| Dongjin Semichem |
Pureun Mutual and Dongjin Semichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Dongjin Semichem
The main advantage of trading using opposite Pureun Mutual and Dongjin Semichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Dongjin Semichem 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 Dongjin Semichem will offset losses from the drop in Dongjin Semichem's long position.| Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group | Pureun Mutual vs. Hana Financial | Pureun Mutual vs. Woori Financial Group |
| Dongjin Semichem vs. Wonik Ips Co | Dongjin Semichem vs. Nepes | Dongjin Semichem vs. LEENO Industrial | Dongjin Semichem vs. LF 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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