Correlation Between Dongil Technology and Hana Technology
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and Hana Technology 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 Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Hana Technology Co, you can compare the effects of market volatilities on Dongil Technology and Hana Technology 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 Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Hana Technology.
Diversification Opportunities for Dongil Technology and Hana Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongil and Hana is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana 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 Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of Dongil Technology i.e., Dongil Technology and Hana Technology go up and down completely randomly.
Pair Corralation between Dongil Technology and Hana Technology
Assuming the 90 days trading horizon Dongil Technology is expected to generate 0.41 times more return on investment than Hana Technology. However, Dongil Technology is 2.46 times less risky than Hana Technology. It trades about -0.03 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.13 per unit of risk. If you would invest 1,200,466 in Dongil Technology on August 26, 2024 and sell it today you would lose (144,466) from holding Dongil Technology or give up 12.03% 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. Hana Technology Co
Performance |
| Timeline |
| Dongil Technology |
| Hana Technology |
Dongil Technology and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Hana Technology
The main advantage of trading using opposite Dongil Technology and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, Hana Technology 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 Hana Technology will offset losses from the drop in Hana Technology'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 |
| Hana Technology vs. Rainbow Robotics | Hana Technology vs. COWINTECH Co | Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. DAEMO Engineering 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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