Correlation Between Dongil Technology and KG Eco
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and KG Eco 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 KG Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and KG Eco Technology, you can compare the effects of market volatilities on Dongil Technology and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and KG Eco.
Diversification Opportunities for Dongil Technology and KG Eco
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongil and 151860 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Dongil Technology i.e., Dongil Technology and KG Eco go up and down completely randomly.
Pair Corralation between Dongil Technology and KG Eco
Assuming the 90 days trading horizon Dongil Technology is expected to under-perform the KG Eco. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Technology is 3.76 times less risky than KG Eco. The stock trades about -0.25 of its potential returns per unit of risk. The KG Eco Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 517,000 in KG Eco Technology on August 30, 2024 and sell it today you would earn a total of 14,000 from holding KG Eco Technology or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. KG Eco Technology
Performance |
| Timeline |
| Dongil Technology |
| KG Eco Technology |
Dongil Technology and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and KG Eco
The main advantage of trading using opposite Dongil Technology and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco's long position.| Dongil Technology vs. Daou Data Corp | Dongil Technology vs. Busan Industrial Co | Dongil Technology vs. Busan Ind | Dongil Technology vs. Shinhan WTI Futures |
| KG Eco vs. KB Financial Group | KG Eco vs. Shinhan Financial Group | KG Eco vs. Hana Financial | KG Eco vs. Woori Financial Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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