Correlation Between EO Technics and Dongsin Engineering
Can any of the company-specific risk be diversified away by investing in both EO Technics 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 EO Technics and Dongsin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EO Technics Co and Dongsin Engineering Construction, you can compare the effects of market volatilities on EO Technics 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 EO Technics with a short position of Dongsin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of EO Technics and Dongsin Engineering.
Diversification Opportunities for EO Technics and Dongsin Engineering
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 039030 and Dongsin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding EO Technics 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 EO Technics 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 EO Technics 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 EO Technics i.e., EO Technics and Dongsin Engineering go up and down completely randomly.
Pair Corralation between EO Technics and Dongsin Engineering
Assuming the 90 days trading horizon EO Technics Co is expected to generate 0.77 times more return on investment than Dongsin Engineering. However, EO Technics Co is 1.3 times less risky than Dongsin Engineering. It trades about 0.05 of its potential returns per unit of risk. Dongsin Engineering Construction is currently generating about 0.04 per unit of risk. If you would invest 6,611,556 in EO Technics Co on September 3, 2024 and sell it today you would earn a total of 5,008,444 from holding EO Technics Co or generate 75.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EO Technics Co vs. Dongsin Engineering Constructi
Performance |
| Timeline |
| EO Technics |
| Dongsin Engineering |
EO Technics and Dongsin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EO Technics and Dongsin Engineering
The main advantage of trading using opposite EO Technics and Dongsin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EO Technics 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.| EO Technics vs. Dongsin Engineering Construction | EO Technics vs. Doosan Fuel Cell | EO Technics vs. Daishin Balance 1 | EO Technics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |