Correlation Between Dongil Technology and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and ABOV Semiconductor 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 ABOV Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and ABOV Semiconductor Co, you can compare the effects of market volatilities on Dongil Technology and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and ABOV Semiconductor.
Diversification Opportunities for Dongil Technology and ABOV Semiconductor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongil and ABOV is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Dongil Technology i.e., Dongil Technology and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Dongil Technology and ABOV Semiconductor
Assuming the 90 days trading horizon Dongil Technology is expected to under-perform the ABOV Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Technology is 3.68 times less risky than ABOV Semiconductor. The stock trades about -0.03 of its potential returns per unit of risk. The ABOV Semiconductor Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 881,093 in ABOV Semiconductor Co on August 26, 2024 and sell it today you would lose (62,093) from holding ABOV Semiconductor Co or give up 7.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Dongil Technology |
| ABOV Semiconductor |
Dongil Technology and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and ABOV Semiconductor
The main advantage of trading using opposite Dongil Technology and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Dongil Technology vs. Miwon Chemicals Co | Dongil Technology vs. Shinhan Inverse Silver | Dongil Technology vs. Hana Financial | Dongil Technology vs. BGF Retail Co |
| ABOV Semiconductor vs. Korea Real Estate | ABOV Semiconductor vs. Korea Ratings Co | ABOV Semiconductor vs. IQuest Co | ABOV Semiconductor vs. Wonbang Tech Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |