Correlation Between Dong A and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Dong A and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Dong A and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and Inzi Display.
Diversification Opportunities for Dong A and Inzi Display
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dong and Inzi is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Steel Technology and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Dong A i.e., Dong A and Inzi Display go up and down completely randomly.
Pair Corralation between Dong A and Inzi Display
Assuming the 90 days trading horizon Dong A Steel Technology is expected to generate 1.35 times more return on investment than Inzi Display. However, Dong A is 1.35 times more volatile than Inzi Display CoLtd. It trades about 0.26 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.15 per unit of risk. If you would invest 292,925 in Dong A Steel Technology on October 16, 2024 and sell it today you would earn a total of 23,075 from holding Dong A Steel Technology or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Steel Technology vs. Inzi Display CoLtd
Performance |
| Timeline |
| Dong A Steel |
| Inzi Display CoLtd |
Dong A and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and Inzi Display
The main advantage of trading using opposite Dong A and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Dong A vs. Dongbang Transport Logistics | Dong A vs. System and Application | Dong A vs. DataSolution | Dong A vs. Duksan Hi Metal |
| Inzi Display vs. LG Display Co | Inzi Display vs. Jeil Steel Mfg | Inzi Display vs. Dong A Steel Technology | Inzi Display vs. Sangsin Energy Display |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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