Correlation Between Dongyang and Koh Young
Can any of the company-specific risk be diversified away by investing in both Dongyang and Koh Young 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 Dongyang and Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongyang EP and Koh Young Technology, you can compare the effects of market volatilities on Dongyang and Koh Young 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 Dongyang with a short position of Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongyang and Koh Young.
Diversification Opportunities for Dongyang and Koh Young
Very weak diversification
The 3 months correlation between Dongyang and Koh is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dongyang EP and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology and Dongyang 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 Dongyang EP are associated (or correlated) with Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Dongyang i.e., Dongyang and Koh Young go up and down completely randomly.
Pair Corralation between Dongyang and Koh Young
Assuming the 90 days trading horizon Dongyang EP is expected to generate 0.58 times more return on investment than Koh Young. However, Dongyang EP is 1.74 times less risky than Koh Young. It trades about 0.02 of its potential returns per unit of risk. Koh Young Technology is currently generating about -0.15 per unit of risk. If you would invest 1,900,000 in Dongyang EP on September 2, 2024 and sell it today you would earn a total of 22,000 from holding Dongyang EP or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Dongyang EP vs. Koh Young Technology
Performance |
| Timeline |
| Dongyang EP |
| Koh Young Technology |
Dongyang and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongyang and Koh Young
The main advantage of trading using opposite Dongyang and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongyang position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Dongyang vs. Digital Power Communications | Dongyang vs. Lotte Data Communication | Dongyang vs. Inzi Display CoLtd | Dongyang vs. Nable Communications |
| Koh Young vs. Dongsin Engineering Construction | Koh Young vs. Doosan Fuel Cell | Koh Young vs. Daishin Balance 1 | Koh Young 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |