Correlation Between Dongsuh and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Dongsuh and Hankukpackage 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 Dongsuh and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongsuh and Hankukpackage Co, you can compare the effects of market volatilities on Dongsuh and Hankukpackage 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 Dongsuh with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsuh and Hankukpackage.
Diversification Opportunities for Dongsuh and Hankukpackage
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongsuh and Hankukpackage is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dongsuh and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Dongsuh 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 Dongsuh are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Dongsuh i.e., Dongsuh and Hankukpackage go up and down completely randomly.
Pair Corralation between Dongsuh and Hankukpackage
Assuming the 90 days trading horizon Dongsuh is expected to generate 1.99 times more return on investment than Hankukpackage. However, Dongsuh is 1.99 times more volatile than Hankukpackage Co. It trades about 0.05 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.04 per unit of risk. If you would invest 1,715,524 in Dongsuh on November 3, 2024 and sell it today you would earn a total of 609,476 from holding Dongsuh or generate 35.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsuh vs. Hankukpackage Co
Performance |
| Timeline |
| Dongsuh |
| Hankukpackage |
Dongsuh and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsuh and Hankukpackage
The main advantage of trading using opposite Dongsuh and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsuh position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Dongsuh vs. MediaZen | Dongsuh vs. Daishin Information Communications | Dongsuh vs. Tamul Multimedia Co | Dongsuh vs. Alton Sports CoLtd |
| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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