Correlation Between Dongwon System and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Dongwon System and Kginicis CoLtd 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 Dongwon System and Kginicis CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon System and Kginicis CoLtd, you can compare the effects of market volatilities on Dongwon System and Kginicis CoLtd 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 Dongwon System with a short position of Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon System and Kginicis CoLtd.
Diversification Opportunities for Dongwon System and Kginicis CoLtd
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongwon and Kginicis is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon System and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd and Dongwon System 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 Dongwon System are associated (or correlated) with Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Dongwon System i.e., Dongwon System and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Dongwon System and Kginicis CoLtd
Assuming the 90 days trading horizon Dongwon System is expected to under-perform the Kginicis CoLtd. In addition to that, Dongwon System is 1.17 times more volatile than Kginicis CoLtd. It trades about -0.02 of its total potential returns per unit of risk. Kginicis CoLtd is currently generating about 0.12 per unit of volatility. If you would invest 883,000 in Kginicis CoLtd on September 14, 2024 and sell it today you would earn a total of 62,000 from holding Kginicis CoLtd or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dongwon System vs. Kginicis CoLtd
Performance |
| Timeline |
| Dongwon System |
| Kginicis CoLtd |
Dongwon System and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon System and Kginicis CoLtd
The main advantage of trading using opposite Dongwon System and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon System position performs unexpectedly, Kginicis CoLtd 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Dongwon System vs. DSC Investment | Dongwon System vs. Jeju Air Co | Dongwon System vs. Woori Technology Investment | Dongwon System vs. CU Medical Systems |
| Kginicis CoLtd vs. Cube Entertainment | Kginicis CoLtd vs. Dreamus Company | Kginicis CoLtd vs. LG Energy Solution | Kginicis CoLtd vs. Dongwon System |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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