Correlation Between Inzi Display and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Inzi Display and DONGKUK TED 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 Inzi Display and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and DONGKUK TED METAL, you can compare the effects of market volatilities on Inzi Display and DONGKUK TED 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 Inzi Display with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and DONGKUK TED.
Diversification Opportunities for Inzi Display and DONGKUK TED
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inzi and DONGKUK is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Inzi Display i.e., Inzi Display and DONGKUK TED go up and down completely randomly.
Pair Corralation between Inzi Display and DONGKUK TED
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the DONGKUK TED. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 1.3 times less risky than DONGKUK TED. The stock trades about -0.08 of its potential returns per unit of risk. The DONGKUK TED METAL is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 598,000 in DONGKUK TED METAL on October 14, 2024 and sell it today you would earn a total of 48,000 from holding DONGKUK TED METAL or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. DONGKUK TED METAL
Performance |
| Timeline |
| Inzi Display CoLtd |
| DONGKUK TED METAL |
Inzi Display and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and DONGKUK TED
The main advantage of trading using opposite Inzi Display and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| Inzi Display vs. KMH Hitech Co | Inzi Display vs. GemVaxKAEL CoLtd | Inzi Display vs. Bosung Power Technology | Inzi Display vs. Busan Industrial Co |
| DONGKUK TED vs. Dongil Metal Co | DONGKUK TED vs. Clean Science co | DONGKUK TED vs. Hanjoo Light Metal | DONGKUK TED vs. Daiyang Metal 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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