Correlation Between Orbitech and Dongwoo Farm
Can any of the company-specific risk be diversified away by investing in both Orbitech and Dongwoo Farm 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 Orbitech and Dongwoo Farm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Dongwoo Farm To, you can compare the effects of market volatilities on Orbitech and Dongwoo Farm 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 Orbitech with a short position of Dongwoo Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Dongwoo Farm.
Diversification Opportunities for Orbitech and Dongwoo Farm
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Orbitech and Dongwoo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Dongwoo Farm To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoo Farm To and Orbitech 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 Orbitech Co are associated (or correlated) with Dongwoo Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoo Farm To has no effect on the direction of Orbitech i.e., Orbitech and Dongwoo Farm go up and down completely randomly.
Pair Corralation between Orbitech and Dongwoo Farm
Assuming the 90 days trading horizon Orbitech Co is expected to generate 4.38 times more return on investment than Dongwoo Farm. However, Orbitech is 4.38 times more volatile than Dongwoo Farm To. It trades about 0.21 of its potential returns per unit of risk. Dongwoo Farm To is currently generating about -0.08 per unit of risk. If you would invest 204,000 in Orbitech Co on November 7, 2024 and sell it today you would earn a total of 30,500 from holding Orbitech Co or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Orbitech Co vs. Dongwoo Farm To
Performance |
| Timeline |
| Orbitech |
| Dongwoo Farm To |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Orbitech and Dongwoo Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Dongwoo Farm
The main advantage of trading using opposite Orbitech and Dongwoo Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Dongwoo Farm 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 Dongwoo Farm will offset losses from the drop in Dongwoo Farm's long position.| Orbitech vs. Namhae Chemical | Orbitech vs. Seoul Semiconductor Co | Orbitech vs. Heungkuk Metaltech CoLtd | Orbitech vs. SK IE Technology |
| Dongwoo Farm vs. Dongnam Chemical Co | Dongwoo Farm vs. ISU Chemical Co | Dongwoo Farm vs. FNC Entertainment Co | Dongwoo Farm vs. Kaonmedia 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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