Correlation Between Dongsin Engineering and Global Standard
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Global Standard 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 Global Standard 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 Global Standard Technology, you can compare the effects of market volatilities on Dongsin Engineering and Global Standard 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 Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Global Standard.
Diversification Opportunities for Dongsin Engineering and Global Standard
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongsin and Global is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech 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 Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Global Standard go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Global Standard
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to generate 1.87 times more return on investment than Global Standard. However, Dongsin Engineering is 1.87 times more volatile than Global Standard Technology. It trades about 0.04 of its potential returns per unit of risk. Global Standard Technology is currently generating about -0.05 per unit of risk. If you would invest 1,871,000 in Dongsin Engineering Construction on September 3, 2024 and sell it today you would earn a total of 51,000 from holding Dongsin Engineering Construction or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsin Engineering Constructi vs. Global Standard Technology
Performance |
| Timeline |
| Dongsin Engineering |
| Global Standard Tech |
Dongsin Engineering and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsin Engineering and Global Standard
The main advantage of trading using opposite Dongsin Engineering and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard'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 |
| Global Standard vs. Dongsin Engineering Construction | Global Standard vs. Doosan Fuel Cell | Global Standard vs. Daishin Balance 1 | Global Standard vs. Total Soft Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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