Correlation Between Dongwoo Farm and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Dongwoo Farm and Tuksu Engineering 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 Dongwoo Farm and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwoo Farm To and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Dongwoo Farm and Tuksu Engineering 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 Dongwoo Farm with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoo Farm and Tuksu Engineering.
Diversification Opportunities for Dongwoo Farm and Tuksu Engineering
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongwoo and Tuksu is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoo Farm To and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and Dongwoo Farm 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 Dongwoo Farm To are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Dongwoo Farm i.e., Dongwoo Farm and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Dongwoo Farm and Tuksu Engineering
Assuming the 90 days trading horizon Dongwoo Farm To is expected to under-perform the Tuksu Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Dongwoo Farm To is 2.84 times less risky than Tuksu Engineering. The stock trades about -0.18 of its potential returns per unit of risk. The Tuksu Engineering ConstructionLtd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 624,000 in Tuksu Engineering ConstructionLtd on August 29, 2024 and sell it today you would earn a total of 9,000 from holding Tuksu Engineering ConstructionLtd or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoo Farm To vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Dongwoo Farm To |
| Tuksu Engineering |
Dongwoo Farm and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoo Farm and Tuksu Engineering
The main advantage of trading using opposite Dongwoo Farm and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoo Farm position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Dongwoo Farm vs. J Steel Co | Dongwoo Farm vs. Hanil Iron Steel | Dongwoo Farm vs. DAEDUCK ELECTRONICS CoLtd | Dongwoo Farm vs. Han Kook Steel |
| Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Samsung Electronics Co | Tuksu Engineering vs. Hyundai Motor Co | Tuksu Engineering vs. Hyundai Motor |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |