Correlation Between Dongil Technology and LAKE MATERIALS
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and LAKE MATERIALS 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 LAKE MATERIALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and LAKE MATERIALS LTD, you can compare the effects of market volatilities on Dongil Technology and LAKE MATERIALS 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 LAKE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and LAKE MATERIALS.
Diversification Opportunities for Dongil Technology and LAKE MATERIALS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongil and LAKE is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and LAKE MATERIALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAKE MATERIALS LTD 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 LAKE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAKE MATERIALS LTD has no effect on the direction of Dongil Technology i.e., Dongil Technology and LAKE MATERIALS go up and down completely randomly.
Pair Corralation between Dongil Technology and LAKE MATERIALS
Assuming the 90 days trading horizon Dongil Technology is expected to generate 0.31 times more return on investment than LAKE MATERIALS. However, Dongil Technology is 3.25 times less risky than LAKE MATERIALS. It trades about -0.06 of its potential returns per unit of risk. LAKE MATERIALS LTD is currently generating about -0.07 per unit of risk. If you would invest 1,114,201 in Dongil Technology on October 30, 2024 and sell it today you would lose (109,201) from holding Dongil Technology or give up 9.8% 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. LAKE MATERIALS LTD
Performance |
| Timeline |
| Dongil Technology |
| LAKE MATERIALS LTD |
Dongil Technology and LAKE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and LAKE MATERIALS
The main advantage of trading using opposite Dongil Technology and LAKE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, LAKE MATERIALS 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 LAKE MATERIALS will offset losses from the drop in LAKE MATERIALS's long position.| Dongil Technology vs. InfoBank | Dongil Technology vs. Incar Financial Service | Dongil Technology vs. KakaoBank Corp | Dongil Technology vs. Lotte Chilsung Beverage |
| LAKE MATERIALS vs. Sangsangin Investment Securities | LAKE MATERIALS vs. Seers Technology | LAKE MATERIALS vs. BIT Computer Co | LAKE MATERIALS vs. HB Technology TD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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