Correlation Between Dong A and SundayToz Corp
Can any of the company-specific risk be diversified away by investing in both Dong A and SundayToz Corp 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 SundayToz Corp 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 SundayToz Corp, you can compare the effects of market volatilities on Dong A and SundayToz Corp 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 SundayToz Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and SundayToz Corp.
Diversification Opportunities for Dong A and SundayToz Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dong and SundayToz is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Steel Technology and SundayToz Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SundayToz Corp 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 SundayToz Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SundayToz Corp has no effect on the direction of Dong A i.e., Dong A and SundayToz Corp go up and down completely randomly.
Pair Corralation between Dong A and SundayToz Corp
Assuming the 90 days trading horizon Dong A Steel Technology is expected to under-perform the SundayToz Corp. But the stock apears to be less risky and, when comparing its historical volatility, Dong A Steel Technology is 1.65 times less risky than SundayToz Corp. The stock trades about -0.01 of its potential returns per unit of risk. The SundayToz Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,340,000 in SundayToz Corp on August 29, 2024 and sell it today you would lose (565,000) from holding SundayToz Corp or give up 42.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Steel Technology vs. SundayToz Corp
Performance |
| Timeline |
| Dong A Steel |
| SundayToz Corp |
Dong A and SundayToz Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and SundayToz Corp
The main advantage of trading using opposite Dong A and SundayToz Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, SundayToz Corp 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 SundayToz Corp will offset losses from the drop in SundayToz Corp's long position.| Dong A vs. AptaBio Therapeutics | Dong A vs. Daewoo SBI SPAC | Dong A vs. Dream Security co | Dong A vs. Microfriend |
| SundayToz Corp vs. Dong A Steel Technology | SundayToz Corp vs. Green Cross Medical | SundayToz Corp vs. Daechang Steel Co | SundayToz Corp vs. Kukdong Oil Chemicals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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