Correlation Between Dongsin Engineering and Seegene
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Seegene 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 Seegene 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 Seegene, you can compare the effects of market volatilities on Dongsin Engineering and Seegene 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 Seegene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Seegene.
Diversification Opportunities for Dongsin Engineering and Seegene
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongsin and Seegene is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene 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 Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Seegene go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Seegene
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to under-perform the Seegene. In addition to that, Dongsin Engineering is 4.53 times more volatile than Seegene. It trades about -0.05 of its total potential returns per unit of risk. Seegene is currently generating about 0.02 per unit of volatility. If you would invest 2,365,000 in Seegene on September 3, 2024 and sell it today you would earn a total of 10,000 from holding Seegene or generate 0.42% 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. Seegene
Performance |
| Timeline |
| Dongsin Engineering |
| Seegene |
Dongsin Engineering and Seegene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsin Engineering and Seegene
The main advantage of trading using opposite Dongsin Engineering and Seegene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Seegene 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 Seegene will offset losses from the drop in Seegene'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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |