Correlation Between Dong A and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Dong A and Kisan Telecom 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 Dong A and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dong A Steel Technology and Kisan Telecom Co, you can compare the effects of market volatilities on Dong A and Kisan Telecom 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 Dong A with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and Kisan Telecom.
Diversification Opportunities for Dong A and Kisan Telecom
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dong and Kisan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Steel Technology and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and Dong A 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 Dong A Steel Technology are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Dong A i.e., Dong A and Kisan Telecom go up and down completely randomly.
Pair Corralation between Dong A and Kisan Telecom
Assuming the 90 days trading horizon Dong A Steel Technology is expected to generate 0.98 times more return on investment than Kisan Telecom. However, Dong A Steel Technology is 1.02 times less risky than Kisan Telecom. It trades about -0.02 of its potential returns per unit of risk. Kisan Telecom Co is currently generating about -0.04 per unit of risk. If you would invest 517,000 in Dong A Steel Technology on September 2, 2024 and sell it today you would lose (177,000) from holding Dong A Steel Technology or give up 34.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Steel Technology vs. Kisan Telecom Co
Performance |
| Timeline |
| Dong A Steel |
| Kisan Telecom |
Dong A and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and Kisan Telecom
The main advantage of trading using opposite Dong A and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Dong A vs. AptaBio Therapeutics | Dong A vs. Daewoo SBI SPAC | Dong A vs. Dream Security co | Dong A vs. Microfriend |
| Kisan Telecom vs. Dongsin Engineering Construction | Kisan Telecom vs. Doosan Fuel Cell | Kisan Telecom vs. Daishin Balance 1 | Kisan Telecom vs. Total Soft Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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