Correlation Between ITM Semiconductor and Dongbang Ship
Can any of the company-specific risk be diversified away by investing in both ITM Semiconductor and Dongbang Ship 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 Dongbang Ship 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 Dongbang Ship Machinery, you can compare the effects of market volatilities on ITM Semiconductor and Dongbang Ship 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 Dongbang Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Semiconductor and Dongbang Ship.
Diversification Opportunities for ITM Semiconductor and Dongbang Ship
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ITM and Dongbang is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ITM Semiconductor Co and Dongbang Ship Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Ship Machinery 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 Dongbang Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Ship Machinery has no effect on the direction of ITM Semiconductor i.e., ITM Semiconductor and Dongbang Ship go up and down completely randomly.
Pair Corralation between ITM Semiconductor and Dongbang Ship
Assuming the 90 days trading horizon ITM Semiconductor Co is expected to under-perform the Dongbang Ship. In addition to that, ITM Semiconductor is 1.41 times more volatile than Dongbang Ship Machinery. It trades about -0.1 of its total potential returns per unit of risk. Dongbang Ship Machinery is currently generating about -0.09 per unit of volatility. If you would invest 337,500 in Dongbang Ship Machinery on October 15, 2024 and sell it today you would lose (13,000) from holding Dongbang Ship Machinery or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITM Semiconductor Co vs. Dongbang Ship Machinery
Performance |
| Timeline |
| ITM Semiconductor |
| Dongbang Ship Machinery |
ITM Semiconductor and Dongbang Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Semiconductor and Dongbang Ship
The main advantage of trading using opposite ITM Semiconductor and Dongbang Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Semiconductor position performs unexpectedly, Dongbang Ship 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 Dongbang Ship will offset losses from the drop in Dongbang Ship's long position.| ITM Semiconductor vs. Samsung Electronics Co | ITM Semiconductor vs. Hanwha Chemical Corp | ITM Semiconductor vs. Alton Sports CoLtd | ITM Semiconductor vs. KPX Green Chemical |
| Dongbang Ship vs. ITM Semiconductor Co | Dongbang Ship vs. ABCO Electronics Co | Dongbang Ship vs. Mirai Semiconductors Co | Dongbang Ship vs. Shinhan Inverse Silver |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |