Correlation Between Dong A and Atec
Can any of the company-specific risk be diversified away by investing in both Dong A and Atec 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 Atec 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 Atec Co, you can compare the effects of market volatilities on Dong A and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and Atec.
Diversification Opportunities for Dong A and Atec
Pay attention - limited upside
The 3 months correlation between Dong and Atec is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Eltek and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Dong A i.e., Dong A and Atec go up and down completely randomly.
Pair Corralation between Dong A and Atec
Assuming the 90 days trading horizon Dong A Eltek is expected to under-perform the Atec. But the stock apears to be less risky and, when comparing its historical volatility, Dong A Eltek is 3.89 times less risky than Atec. The stock trades about -0.43 of its potential returns per unit of risk. The Atec Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,800,000 in Atec Co on October 20, 2024 and sell it today you would lose (125,000) from holding Atec Co or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Eltek vs. Atec Co
Performance |
| Timeline |
| Dong A Eltek |
| Atec |
Dong A and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and Atec
The main advantage of trading using opposite Dong A and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Dong A vs. Hankukpackage Co | Dong A vs. SBI Investment KOREA | Dong A vs. SK Chemicals Co | Dong A vs. Haitai Confectionery Foods |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets |