Correlation Between Dong A and DAEA TI
Can any of the company-specific risk be diversified away by investing in both Dong A and DAEA TI 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 DAEA TI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dong A Eltek and DAEA TI Co, you can compare the effects of market volatilities on Dong A and DAEA TI 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 DAEA TI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and DAEA TI.
Diversification Opportunities for Dong A and DAEA TI
Pay attention - limited upside
The 3 months correlation between Dong and DAEA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Eltek and DAEA TI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEA TI 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 Eltek are associated (or correlated) with DAEA TI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEA TI has no effect on the direction of Dong A i.e., Dong A and DAEA TI go up and down completely randomly.
Pair Corralation between Dong A and DAEA TI
Assuming the 90 days trading horizon Dong A Eltek is expected to generate 1.71 times more return on investment than DAEA TI. However, Dong A is 1.71 times more volatile than DAEA TI Co. It trades about 0.01 of its potential returns per unit of risk. DAEA TI Co is currently generating about 0.01 per unit of risk. If you would invest 390,647 in Dong A Eltek on November 2, 2024 and sell it today you would lose (61,647) from holding Dong A Eltek or give up 15.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Eltek vs. DAEA TI Co
Performance |
| Timeline |
| Dong A Eltek |
| DAEA TI |
Dong A and DAEA TI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and DAEA TI
The main advantage of trading using opposite Dong A and DAEA TI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, DAEA TI 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 DAEA TI will offset losses from the drop in DAEA TI's long position.| Dong A vs. Kukdo Chemical Co | Dong A vs. Automobile Pc | Dong A vs. Lotte Data Communication | Dong A vs. Tway Air Co |
| DAEA TI vs. EO Technics Co | DAEA TI vs. EASY HOLDINGS Co | DAEA TI vs. Nepes | DAEA TI vs. JUSUNG ENGINEERING 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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