Correlation Between Dongwoo Farm and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Dongwoo Farm and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Dongwoo Farm and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoo Farm and Koryo Credit.
Diversification Opportunities for Dongwoo Farm and Koryo Credit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dongwoo and Koryo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoo Farm To and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Dongwoo Farm i.e., Dongwoo Farm and Koryo Credit go up and down completely randomly.
Pair Corralation between Dongwoo Farm and Koryo Credit
Assuming the 90 days trading horizon Dongwoo Farm To is expected to generate 1.3 times more return on investment than Koryo Credit. However, Dongwoo Farm is 1.3 times more volatile than Koryo Credit Information. It trades about 0.13 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.16 per unit of risk. If you would invest 191,095 in Dongwoo Farm To on October 24, 2024 and sell it today you would earn a total of 4,305 from holding Dongwoo Farm To or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoo Farm To vs. Koryo Credit Information
Performance |
| Timeline |
| Dongwoo Farm To |
| Koryo Credit Information |
Dongwoo Farm and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoo Farm and Koryo Credit
The main advantage of trading using opposite Dongwoo Farm and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoo Farm position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Dongwoo Farm vs. Maeil Dairies Co | Dongwoo Farm vs. HYUNDAI FEED | Dongwoo Farm vs. Neo Cremar Co | Dongwoo Farm vs. Wing Yip Food |
| Koryo Credit vs. Phoenix Materials Co | Koryo Credit vs. LS Materials | Koryo Credit vs. Duksan Hi Metal | Koryo Credit vs. Top Material 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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