Correlation Between Dongil Technology and Cuckoo Electronics
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and Cuckoo Electronics 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 Cuckoo Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Cuckoo Electronics Co, you can compare the effects of market volatilities on Dongil Technology and Cuckoo Electronics 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 Cuckoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Cuckoo Electronics.
Diversification Opportunities for Dongil Technology and Cuckoo Electronics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongil and Cuckoo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and Cuckoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Electronics 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 Cuckoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Electronics has no effect on the direction of Dongil Technology i.e., Dongil Technology and Cuckoo Electronics go up and down completely randomly.
Pair Corralation between Dongil Technology and Cuckoo Electronics
Assuming the 90 days trading horizon Dongil Technology is expected to under-perform the Cuckoo Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Technology is 1.37 times less risky than Cuckoo Electronics. The stock trades about -0.29 of its potential returns per unit of risk. The Cuckoo Electronics Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 2,440,000 in Cuckoo Electronics Co on September 1, 2024 and sell it today you would lose (130,000) from holding Cuckoo Electronics Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. Cuckoo Electronics Co
Performance |
| Timeline |
| Dongil Technology |
| Cuckoo Electronics |
Dongil Technology and Cuckoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Cuckoo Electronics
The main advantage of trading using opposite Dongil Technology and Cuckoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, Cuckoo Electronics 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 Cuckoo Electronics will offset losses from the drop in Cuckoo Electronics' long position.| Dongil Technology vs. Dongsin Engineering Construction | Dongil Technology vs. Doosan Fuel Cell | Dongil Technology vs. Daishin Balance 1 | Dongil Technology vs. Total Soft Bank |
| Cuckoo Electronics vs. Hyunwoo Industrial Co | Cuckoo Electronics vs. Myoung Shin Industrial | Cuckoo Electronics vs. Seoyon Topmetal Co | Cuckoo Electronics vs. Eagon Industrial 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |