Correlation Between Dongsin Engineering and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Puloon 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 Puloon 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 Puloon Technology, you can compare the effects of market volatilities on Dongsin Engineering and Puloon 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Puloon Technology.
Diversification Opportunities for Dongsin Engineering and Puloon Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongsin and Puloon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Puloon Technology go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Puloon Technology
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to generate 1.44 times more return on investment than Puloon Technology. However, Dongsin Engineering is 1.44 times more volatile than Puloon Technology. It trades about 0.04 of its potential returns per unit of risk. Puloon Technology is currently generating about 0.01 per unit of risk. If you would invest 1,455,236 in Dongsin Engineering Construction on September 2, 2024 and sell it today you would earn a total of 466,764 from holding Dongsin Engineering Construction or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsin Engineering Constructi vs. Puloon Technology
Performance |
| Timeline |
| Dongsin Engineering |
| Puloon Technology |
Dongsin Engineering and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsin Engineering and Puloon Technology
The main advantage of trading using opposite Dongsin Engineering and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Puloon 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Dongsin Engineering vs. Busan Industrial Co | Dongsin Engineering vs. Busan Ind | Dongsin Engineering vs. Mirae Asset Daewoo | Dongsin Engineering vs. Finebesteel |
| Puloon Technology vs. Dongsin Engineering Construction | Puloon Technology vs. Doosan Fuel Cell | Puloon Technology vs. Daishin Balance 1 | Puloon 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |