Correlation Between Dongil Technology and Genie Music
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and Genie Music 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 Dongil Technology and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Genie Music, you can compare the effects of market volatilities on Dongil Technology and Genie Music 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 Dongil Technology with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Genie Music.
Diversification Opportunities for Dongil Technology and Genie Music
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongil and Genie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and Dongil Technology 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 Dongil Technology are associated (or correlated) with Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Dongil Technology i.e., Dongil Technology and Genie Music go up and down completely randomly.
Pair Corralation between Dongil Technology and Genie Music
Assuming the 90 days trading horizon Dongil Technology is expected to under-perform the Genie Music. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Technology is 3.33 times less risky than Genie Music. The stock trades about -0.08 of its potential returns per unit of risk. The Genie Music is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 230,500 in Genie Music on October 18, 2024 and sell it today you would lose (18,500) from holding Genie Music or give up 8.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. Genie Music
Performance |
| Timeline |
| Dongil Technology |
| Genie Music |
Dongil Technology and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Genie Music
The main advantage of trading using opposite Dongil Technology and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| Dongil Technology vs. Seoyon Topmetal Co | Dongil Technology vs. Kukil Metal Co | Dongil Technology vs. Duksan Hi Metal | Dongil Technology vs. DAEDUCK ELECTRONICS CoLtd |
| Genie Music vs. Dongil Technology | Genie Music vs. Nh Investment And | Genie Music vs. Woori Technology Investment | Genie Music vs. E Investment Development |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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