Correlation Between Daewoo Electronic and Dongwoo Farm
Can any of the company-specific risk be diversified away by investing in both Daewoo Electronic and Dongwoo Farm 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 Daewoo Electronic and Dongwoo Farm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo Electronic Components and Dongwoo Farm To, you can compare the effects of market volatilities on Daewoo Electronic and Dongwoo Farm 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 Daewoo Electronic with a short position of Dongwoo Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo Electronic and Dongwoo Farm.
Diversification Opportunities for Daewoo Electronic and Dongwoo Farm
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daewoo and Dongwoo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo Electronic Components and Dongwoo Farm To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoo Farm To and Daewoo Electronic 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 Daewoo Electronic Components are associated (or correlated) with Dongwoo Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoo Farm To has no effect on the direction of Daewoo Electronic i.e., Daewoo Electronic and Dongwoo Farm go up and down completely randomly.
Pair Corralation between Daewoo Electronic and Dongwoo Farm
Assuming the 90 days trading horizon Daewoo Electronic Components is expected to under-perform the Dongwoo Farm. In addition to that, Daewoo Electronic is 2.66 times more volatile than Dongwoo Farm To. It trades about -0.02 of its total potential returns per unit of risk. Dongwoo Farm To is currently generating about 0.0 per unit of volatility. If you would invest 198,873 in Dongwoo Farm To on October 14, 2024 and sell it today you would lose (373.00) from holding Dongwoo Farm To or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewoo Electronic Components vs. Dongwoo Farm To
Performance |
| Timeline |
| Daewoo Electronic |
| Dongwoo Farm To |
Daewoo Electronic and Dongwoo Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo Electronic and Dongwoo Farm
The main advantage of trading using opposite Daewoo Electronic and Dongwoo Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo Electronic position performs unexpectedly, Dongwoo Farm 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 Dongwoo Farm will offset losses from the drop in Dongwoo Farm's long position.| Daewoo Electronic vs. Samsung Electronics Co | Daewoo Electronic vs. Samsung Electronics Co | Daewoo Electronic vs. LG Energy Solution | Daewoo Electronic vs. SK Hynix |
| Dongwoo Farm vs. Daewoo Electronic Components | Dongwoo Farm vs. DC Media Co | Dongwoo Farm vs. Samwha Electronics Co | Dongwoo Farm vs. Wave Electronics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |