Correlation Between Kisan Telecom and Dongsin Engineering
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom 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 Kisan Telecom and Dongsin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and Dongsin Engineering Construction, you can compare the effects of market volatilities on Kisan Telecom 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 Kisan Telecom with a short position of Dongsin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Dongsin Engineering.
Diversification Opportunities for Kisan Telecom and Dongsin Engineering
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kisan and Dongsin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Dongsin Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsin Engineering and Kisan Telecom 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 Kisan Telecom Co 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 Kisan Telecom i.e., Kisan Telecom and Dongsin Engineering go up and down completely randomly.
Pair Corralation between Kisan Telecom and Dongsin Engineering
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 0.12 times more return on investment than Dongsin Engineering. However, Kisan Telecom Co is 8.14 times less risky than Dongsin Engineering. It trades about -0.01 of its potential returns per unit of risk. Dongsin Engineering Construction is currently generating about -0.01 per unit of risk. If you would invest 178,700 in Kisan Telecom Co on August 31, 2024 and sell it today you would lose (800.00) from holding Kisan Telecom Co or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Dongsin Engineering Constructi
Performance |
| Timeline |
| Kisan Telecom |
| Dongsin Engineering |
Kisan Telecom and Dongsin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Dongsin Engineering
The main advantage of trading using opposite Kisan Telecom and Dongsin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom 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.| Kisan Telecom vs. Dongsin Engineering Construction | Kisan Telecom vs. Doosan Fuel Cell | Kisan Telecom vs. Daishin Balance 1 | Kisan Telecom vs. Total Soft Bank |
| Dongsin Engineering vs. Busan Industrial Co | Dongsin Engineering vs. Busan Ind | Dongsin Engineering vs. Mirae Asset Daewoo | Dongsin Engineering vs. Finebesteel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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