Correlation Between Dongwon Metal and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Dongwon Metal and DAEDUCK ELECTRONICS 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 Metal and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon Metal Co and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Dongwon Metal and DAEDUCK ELECTRONICS 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 Metal with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon Metal and DAEDUCK ELECTRONICS.
Diversification Opportunities for Dongwon Metal and DAEDUCK ELECTRONICS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongwon and DAEDUCK is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon Metal Co and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and Dongwon Metal 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 Metal Co are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Dongwon Metal i.e., Dongwon Metal and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Dongwon Metal and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Dongwon Metal Co is expected to under-perform the DAEDUCK ELECTRONICS. In addition to that, Dongwon Metal is 1.12 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about -0.34 of its total potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about 0.04 per unit of volatility. If you would invest 805,000 in DAEDUCK ELECTRONICS CoLtd on September 1, 2024 and sell it today you would earn a total of 10,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwon Metal Co vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Dongwon Metal |
| DAEDUCK ELECTRONICS CoLtd |
Dongwon Metal and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon Metal and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Dongwon Metal and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon Metal position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Dongwon Metal vs. AptaBio Therapeutics | Dongwon Metal vs. Daewoo SBI SPAC | Dongwon Metal vs. Dream Security co | Dongwon Metal vs. Microfriend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |