Correlation Between Daishin Information and Dongbang Transport
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Dongbang Transport 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 Daishin Information and Dongbang Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and Dongbang Transport Logistics, you can compare the effects of market volatilities on Daishin Information and Dongbang Transport 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 Daishin Information with a short position of Dongbang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Dongbang Transport.
Diversification Opportunities for Daishin Information and Dongbang Transport
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Dongbang is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Dongbang Transport Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Transport and Daishin Information 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 Daishin Information Communications are associated (or correlated) with Dongbang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Transport has no effect on the direction of Daishin Information i.e., Daishin Information and Dongbang Transport go up and down completely randomly.
Pair Corralation between Daishin Information and Dongbang Transport
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 5.32 times more return on investment than Dongbang Transport. However, Daishin Information is 5.32 times more volatile than Dongbang Transport Logistics. It trades about 0.05 of its potential returns per unit of risk. Dongbang Transport Logistics is currently generating about 0.17 per unit of risk. If you would invest 104,200 in Daishin Information Communications on October 12, 2024 and sell it today you would earn a total of 2,300 from holding Daishin Information Communications or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Dongbang Transport Logistics
Performance |
| Timeline |
| Daishin Information |
| Dongbang Transport |
Daishin Information and Dongbang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Dongbang Transport
The main advantage of trading using opposite Daishin Information and Dongbang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Dongbang Transport 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 Dongbang Transport will offset losses from the drop in Dongbang Transport's long position.| Daishin Information vs. Eagon Industrial Co | Daishin Information vs. Seoyon Topmetal Co | Daishin Information vs. Daejung Chemicals Metals | Daishin Information vs. Youngsin Metal Industrial |
| Dongbang Transport vs. Sajo Seafood | Dongbang Transport vs. DONGKUK TED METAL | Dongbang Transport vs. Osang Healthcare Co,Ltd | Dongbang Transport vs. Chorokbaem Healthcare 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |