Correlation Between Korea Information and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Korea Information and DONGKUK TED 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 Korea Information and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and DONGKUK TED METAL, you can compare the effects of market volatilities on Korea Information and DONGKUK TED 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 Korea Information with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and DONGKUK TED.
Diversification Opportunities for Korea Information and DONGKUK TED
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Korea and DONGKUK is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL and Korea 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 Korea Information Communications are associated (or correlated) with DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Korea Information i.e., Korea Information and DONGKUK TED go up and down completely randomly.
Pair Corralation between Korea Information and DONGKUK TED
Assuming the 90 days trading horizon Korea Information Communications is expected to under-perform the DONGKUK TED. But the stock apears to be less risky and, when comparing its historical volatility, Korea Information Communications is 1.32 times less risky than DONGKUK TED. The stock trades about -0.03 of its potential returns per unit of risk. The DONGKUK TED METAL is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 601,000 in DONGKUK TED METAL on October 30, 2024 and sell it today you would earn a total of 33,000 from holding DONGKUK TED METAL or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Communicatio vs. DONGKUK TED METAL
Performance |
| Timeline |
| Korea Information |
| DONGKUK TED METAL |
Korea Information and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and DONGKUK TED
The main advantage of trading using opposite Korea Information and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| Korea Information vs. Hana Materials | Korea Information vs. Miwon Chemicals Co | Korea Information vs. Top Material Co | Korea Information vs. Sung Bo Chemicals |
| DONGKUK TED vs. Nice Information Telecommunication | DONGKUK TED vs. Kukil Metal Co | DONGKUK TED vs. Dongbang Transport Logistics | DONGKUK TED vs. GS Retail 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |