Correlation Between Daol Investment and Dongbang Ship
Can any of the company-specific risk be diversified away by investing in both Daol Investment and Dongbang Ship 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 Daol Investment and Dongbang Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daol Investment Securities and Dongbang Ship Machinery, you can compare the effects of market volatilities on Daol Investment and Dongbang Ship 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 Daol Investment with a short position of Dongbang Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daol Investment and Dongbang Ship.
Diversification Opportunities for Daol Investment and Dongbang Ship
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daol and Dongbang is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Daol Investment Securities and Dongbang Ship Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Ship Machinery and Daol Investment 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 Daol Investment Securities are associated (or correlated) with Dongbang Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Ship Machinery has no effect on the direction of Daol Investment i.e., Daol Investment and Dongbang Ship go up and down completely randomly.
Pair Corralation between Daol Investment and Dongbang Ship
Assuming the 90 days trading horizon Daol Investment Securities is expected to under-perform the Dongbang Ship. But the stock apears to be less risky and, when comparing its historical volatility, Daol Investment Securities is 2.03 times less risky than Dongbang Ship. The stock trades about -0.17 of its potential returns per unit of risk. The Dongbang Ship Machinery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 304,500 in Dongbang Ship Machinery on August 29, 2024 and sell it today you would earn a total of 500.00 from holding Dongbang Ship Machinery or generate 0.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Daol Investment Securities vs. Dongbang Ship Machinery
Performance |
Timeline |
Daol Investment Secu |
Dongbang Ship Machinery |
Daol Investment and Dongbang Ship Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Daol Investment and Dongbang Ship
The main advantage of trading using opposite Daol Investment and Dongbang Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daol Investment position performs unexpectedly, Dongbang Ship 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 Dongbang Ship will offset losses from the drop in Dongbang Ship's long position.Daol Investment vs. Samsung Electronics Co | Daol Investment vs. Samsung Electronics Co | Daol Investment vs. LG Energy Solution | Daol Investment vs. SK Hynix |
Dongbang Ship vs. Koryo Credit Information | Dongbang Ship vs. Sungdo Engineering Construction | Dongbang Ship vs. Nice Information Telecommunication | Dongbang Ship vs. Shinsegae Information Communication |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |