Correlation Between Dongsin Engineering and Kmw
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Kmw 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 Dongsin Engineering and Kmw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongsin Engineering Construction and Kmw Inc, you can compare the effects of market volatilities on Dongsin Engineering and Kmw 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 Dongsin Engineering with a short position of Kmw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Kmw.
Diversification Opportunities for Dongsin Engineering and Kmw
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongsin and Kmw is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Kmw Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kmw Inc and Dongsin Engineering 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 Dongsin Engineering Construction are associated (or correlated) with Kmw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kmw Inc has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Kmw go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Kmw
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to under-perform the Kmw. In addition to that, Dongsin Engineering is 2.43 times more volatile than Kmw Inc. It trades about -0.05 of its total potential returns per unit of risk. Kmw Inc is currently generating about 0.12 per unit of volatility. If you would invest 779,000 in Kmw Inc on September 3, 2024 and sell it today you would earn a total of 66,000 from holding Kmw Inc or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsin Engineering Constructi vs. Kmw Inc
Performance |
| Timeline |
| Dongsin Engineering |
| Kmw Inc |
Dongsin Engineering and Kmw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsin Engineering and Kmw
The main advantage of trading using opposite Dongsin Engineering and Kmw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Kmw 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 Kmw will offset losses from the drop in Kmw's long position.| Dongsin Engineering vs. DB Financial Investment | Dongsin Engineering vs. EBEST Investment Securities | Dongsin Engineering vs. Stic Investments | Dongsin Engineering vs. Sangsangin Investment Securities |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |