Correlation Between Dongil Steel and Sungwoo Electronics
Can any of the company-specific risk be diversified away by investing in both Dongil Steel and Sungwoo 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 Dongil Steel and Sungwoo Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Steel Co and Sungwoo Electronics Co, you can compare the effects of market volatilities on Dongil Steel and Sungwoo 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 Dongil Steel with a short position of Sungwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Steel and Sungwoo Electronics.
Diversification Opportunities for Dongil Steel and Sungwoo Electronics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongil and Sungwoo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Steel Co and Sungwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Electronics and Dongil Steel 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 Dongil Steel Co are associated (or correlated) with Sungwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Electronics has no effect on the direction of Dongil Steel i.e., Dongil Steel and Sungwoo Electronics go up and down completely randomly.
Pair Corralation between Dongil Steel and Sungwoo Electronics
Assuming the 90 days trading horizon Dongil Steel Co is expected to generate 0.5 times more return on investment than Sungwoo Electronics. However, Dongil Steel Co is 1.99 times less risky than Sungwoo Electronics. It trades about -0.25 of its potential returns per unit of risk. Sungwoo Electronics Co is currently generating about -0.2 per unit of risk. If you would invest 126,000 in Dongil Steel Co on August 29, 2024 and sell it today you would lose (8,500) from holding Dongil Steel Co or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Steel Co vs. Sungwoo Electronics Co
Performance |
| Timeline |
| Dongil Steel |
| Sungwoo Electronics |
Dongil Steel and Sungwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Steel and Sungwoo Electronics
The main advantage of trading using opposite Dongil Steel and Sungwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Steel position performs unexpectedly, Sungwoo 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 Sungwoo Electronics will offset losses from the drop in Sungwoo Electronics' long position.| Dongil Steel vs. Keum Kang Steel | Dongil Steel vs. Tplex Co | Dongil Steel vs. Samhyun Steel Co | Dongil Steel vs. Wonil Special Steel |
| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |