Correlation Between SOOSAN INT and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both SOOSAN INT and Dongil Technology 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 SOOSAN INT and Dongil Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOOSAN INT Co and Dongil Technology, you can compare the effects of market volatilities on SOOSAN INT and Dongil Technology 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 SOOSAN INT with a short position of Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOOSAN INT and Dongil Technology.
Diversification Opportunities for SOOSAN INT and Dongil Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOOSAN and Dongil is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SOOSAN INT Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology and SOOSAN INT 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 SOOSAN INT Co are associated (or correlated) with Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of SOOSAN INT i.e., SOOSAN INT and Dongil Technology go up and down completely randomly.
Pair Corralation between SOOSAN INT and Dongil Technology
Assuming the 90 days trading horizon SOOSAN INT Co is expected to under-perform the Dongil Technology. In addition to that, SOOSAN INT is 5.17 times more volatile than Dongil Technology. It trades about -0.03 of its total potential returns per unit of risk. Dongil Technology is currently generating about -0.02 per unit of volatility. If you would invest 1,004,418 in Dongil Technology on October 25, 2024 and sell it today you would lose (4,418) from holding Dongil Technology or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOOSAN INT Co vs. Dongil Technology
Performance |
| Timeline |
| SOOSAN INT |
| Dongil Technology |
SOOSAN INT and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOOSAN INT and Dongil Technology
The main advantage of trading using opposite SOOSAN INT and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOOSAN INT position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.| SOOSAN INT vs. VAIV Co | SOOSAN INT vs. FLITTO Inc | SOOSAN INT vs. Dream Security co | SOOSAN INT vs. Innodep |
| Dongil Technology vs. Samsung Electronics Co | Dongil Technology vs. Samsung Electronics Co | Dongil Technology vs. SK Hynix | Dongil Technology vs. HMM 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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