Correlation Between Dongil Technology and Jin Air
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and Jin Air 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 Jin Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Jin Air Co, you can compare the effects of market volatilities on Dongil Technology and Jin Air 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Jin Air.
Diversification Opportunities for Dongil Technology and Jin Air
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and Jin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Dongil Technology i.e., Dongil Technology and Jin Air go up and down completely randomly.
Pair Corralation between Dongil Technology and Jin Air
Assuming the 90 days trading horizon Dongil Technology is expected to generate 0.46 times more return on investment than Jin Air. However, Dongil Technology is 2.18 times less risky than Jin Air. It trades about -0.04 of its potential returns per unit of risk. Jin Air Co is currently generating about -0.07 per unit of risk. If you would invest 1,105,534 in Dongil Technology on October 13, 2024 and sell it today you would lose (74,534) from holding Dongil Technology or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. Jin Air Co
Performance |
| Timeline |
| Dongil Technology |
| Jin Air |
Dongil Technology and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Jin Air
The main advantage of trading using opposite Dongil Technology and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| Dongil Technology vs. KMH Hitech Co | Dongil Technology vs. GemVaxKAEL CoLtd | Dongil Technology vs. Bosung Power Technology | Dongil Technology vs. Busan Industrial Co |
| Jin Air vs. Eugene Technology CoLtd | Jin Air vs. Mgame Corp | Jin Air vs. EV Advanced Material | Jin Air vs. Dongil Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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