Correlation Between Dongsin Engineering and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Eugene Technology 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 Eugene Technology 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 Eugene Technology CoLtd, you can compare the effects of market volatilities on Dongsin Engineering and Eugene Technology 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 Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Eugene Technology.
Diversification Opportunities for Dongsin Engineering and Eugene Technology
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongsin and Eugene is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd 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 Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Eugene Technology go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Eugene Technology
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to generate 3.86 times more return on investment than Eugene Technology. However, Dongsin Engineering is 3.86 times more volatile than Eugene Technology CoLtd. It trades about 0.0 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about -0.29 per unit of risk. If you would invest 2,300,000 in Dongsin Engineering Construction on September 3, 2024 and sell it today you would lose (205,000) from holding Dongsin Engineering Construction or give up 8.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dongsin Engineering Constructi vs. Eugene Technology CoLtd
Performance |
Timeline |
Dongsin Engineering |
Eugene Technology CoLtd |
Dongsin Engineering and Eugene Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongsin Engineering and Eugene Technology
The main advantage of trading using opposite Dongsin Engineering and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology'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 |
Eugene Technology vs. Dongsin Engineering Construction | Eugene Technology vs. Doosan Fuel Cell | Eugene Technology vs. Daishin Balance 1 | Eugene Technology 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |