Correlation Between Dongwon System and Koh Young
Can any of the company-specific risk be diversified away by investing in both Dongwon System and Koh Young 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 Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon System and Koh Young Technology, you can compare the effects of market volatilities on Dongwon System and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon System and Koh Young.
Diversification Opportunities for Dongwon System and Koh Young
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongwon and Koh is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon System and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Dongwon System i.e., Dongwon System and Koh Young go up and down completely randomly.
Pair Corralation between Dongwon System and Koh Young
Assuming the 90 days trading horizon Dongwon System is expected to under-perform the Koh Young. In addition to that, Dongwon System is 1.4 times more volatile than Koh Young Technology. It trades about -0.12 of its total potential returns per unit of risk. Koh Young Technology is currently generating about 0.01 per unit of volatility. If you would invest 840,000 in Koh Young Technology on September 13, 2024 and sell it today you would lose (1,000.00) from holding Koh Young Technology or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwon System vs. Koh Young Technology
Performance |
| Timeline |
| Dongwon System |
| Koh Young Technology |
Dongwon System and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon System and Koh Young
The main advantage of trading using opposite Dongwon System and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon System position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Dongwon System vs. ABOV Semiconductor Co | Dongwon System vs. BGF Retail Co | Dongwon System vs. Seoul Semiconductor Co | Dongwon System vs. ITM Semiconductor Co |
| Koh Young vs. Cube Entertainment | Koh Young vs. Dreamus Company | Koh Young vs. LG Energy Solution | Koh Young 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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