Correlation Between Dong A and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Dong A and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Dong A and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and Duksan Hi.
Diversification Opportunities for Dong A and Duksan Hi
Weak diversification
The 3 months correlation between Dong and Duksan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Steel Technology and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Dong A i.e., Dong A and Duksan Hi go up and down completely randomly.
Pair Corralation between Dong A and Duksan Hi
Assuming the 90 days trading horizon Dong A Steel Technology is expected to generate 1.32 times more return on investment than Duksan Hi. However, Dong A is 1.32 times more volatile than Duksan Hi Metal. It trades about 0.02 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.14 per unit of risk. If you would invest 312,228 in Dong A Steel Technology on October 13, 2024 and sell it today you would lose (228.00) from holding Dong A Steel Technology or give up 0.07% of portfolio value 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. Duksan Hi Metal
Performance |
| Timeline |
| Dong A Steel |
| Duksan Hi Metal |
Dong A and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and Duksan Hi
The main advantage of trading using opposite Dong A and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Dong A vs. AptaBio Therapeutics | Dong A vs. Daewoo SBI SPAC | Dong A vs. Dream Security co | Dong A vs. Microfriend |
| Duksan Hi vs. Jeju Beer Co | Duksan Hi vs. Dong A Steel Technology | Duksan Hi vs. Display Tech Co | Duksan Hi vs. Solution Advanced Technology |
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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