Correlation Between Nepes and Dongsin Engineering
Can any of the company-specific risk be diversified away by investing in both Nepes and Dongsin Engineering 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 Nepes and Dongsin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nepes and Dongsin Engineering Construction, you can compare the effects of market volatilities on Nepes and Dongsin Engineering 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 Nepes with a short position of Dongsin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nepes and Dongsin Engineering.
Diversification Opportunities for Nepes and Dongsin Engineering
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nepes and Dongsin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nepes and Dongsin Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsin Engineering and Nepes 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 Nepes are associated (or correlated) with Dongsin Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsin Engineering has no effect on the direction of Nepes i.e., Nepes and Dongsin Engineering go up and down completely randomly.
Pair Corralation between Nepes and Dongsin Engineering
Assuming the 90 days trading horizon Nepes is expected to under-perform the Dongsin Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Nepes is 1.63 times less risky than Dongsin Engineering. The stock trades about -0.18 of its potential returns per unit of risk. The Dongsin Engineering Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,280,000 in Dongsin Engineering Construction on September 3, 2024 and sell it today you would lose (358,000) from holding Dongsin Engineering Construction or give up 15.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nepes vs. Dongsin Engineering Constructi
Performance |
| Timeline |
| Nepes |
| Dongsin Engineering |
Nepes and Dongsin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nepes and Dongsin Engineering
The main advantage of trading using opposite Nepes and Dongsin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nepes position performs unexpectedly, Dongsin Engineering 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 Dongsin Engineering will offset losses from the drop in Dongsin Engineering's long position.| Nepes vs. Dongsin Engineering Construction | Nepes vs. Doosan Fuel Cell | Nepes vs. Daishin Balance 1 | Nepes vs. Total Soft Bank |
| Dongsin Engineering vs. DB Financial Investment | Dongsin Engineering vs. EBEST Investment Securities | Dongsin Engineering vs. Stic Investments | Dongsin Engineering vs. Sangsangin Investment Securities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |