Correlation Between ITM Semiconductor and Dongsuh
Can any of the company-specific risk be diversified away by investing in both ITM Semiconductor and Dongsuh 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 ITM Semiconductor and Dongsuh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITM Semiconductor Co and Dongsuh, you can compare the effects of market volatilities on ITM Semiconductor and Dongsuh 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 ITM Semiconductor with a short position of Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Semiconductor and Dongsuh.
Diversification Opportunities for ITM Semiconductor and Dongsuh
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITM and Dongsuh is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ITM Semiconductor Co and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh and ITM Semiconductor 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 ITM Semiconductor Co are associated (or correlated) with Dongsuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsuh has no effect on the direction of ITM Semiconductor i.e., ITM Semiconductor and Dongsuh go up and down completely randomly.
Pair Corralation between ITM Semiconductor and Dongsuh
Assuming the 90 days trading horizon ITM Semiconductor Co is expected to under-perform the Dongsuh. In addition to that, ITM Semiconductor is 1.27 times more volatile than Dongsuh. It trades about -0.03 of its total potential returns per unit of risk. Dongsuh is currently generating about 0.07 per unit of volatility. If you would invest 1,675,891 in Dongsuh on September 12, 2024 and sell it today you would earn a total of 1,169,109 from holding Dongsuh or generate 69.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITM Semiconductor Co vs. Dongsuh
Performance |
| Timeline |
| ITM Semiconductor |
| Dongsuh |
ITM Semiconductor and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Semiconductor and Dongsuh
The main advantage of trading using opposite ITM Semiconductor and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Semiconductor position performs unexpectedly, Dongsuh 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 Dongsuh will offset losses from the drop in Dongsuh's long position.| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. People Technology | ITM Semiconductor vs. Hana Materials | ITM Semiconductor vs. SIMMTECH Co |
| Dongsuh vs. Nable Communications | Dongsuh vs. Vitzro Tech Co | Dongsuh vs. Korea Information Communications | Dongsuh vs. ITM Semiconductor Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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