Correlation Between Dongwoon Anatech and GemVaxKAEL CoLtd
Can any of the company-specific risk be diversified away by investing in both Dongwoon Anatech and GemVaxKAEL CoLtd 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 Dongwoon Anatech and GemVaxKAEL CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwoon Anatech Co and GemVaxKAEL CoLtd, you can compare the effects of market volatilities on Dongwoon Anatech and GemVaxKAEL CoLtd 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 Dongwoon Anatech with a short position of GemVaxKAEL CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoon Anatech and GemVaxKAEL CoLtd.
Diversification Opportunities for Dongwoon Anatech and GemVaxKAEL CoLtd
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongwoon and GemVaxKAEL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoon Anatech Co and GemVaxKAEL CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GemVaxKAEL CoLtd and Dongwoon Anatech 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 Dongwoon Anatech Co are associated (or correlated) with GemVaxKAEL CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GemVaxKAEL CoLtd has no effect on the direction of Dongwoon Anatech i.e., Dongwoon Anatech and GemVaxKAEL CoLtd go up and down completely randomly.
Pair Corralation between Dongwoon Anatech and GemVaxKAEL CoLtd
Assuming the 90 days trading horizon Dongwoon Anatech is expected to generate 1.62 times less return on investment than GemVaxKAEL CoLtd. In addition to that, Dongwoon Anatech is 1.03 times more volatile than GemVaxKAEL CoLtd. It trades about 0.23 of its total potential returns per unit of risk. GemVaxKAEL CoLtd is currently generating about 0.38 per unit of volatility. If you would invest 1,480,000 in GemVaxKAEL CoLtd on October 30, 2024 and sell it today you would earn a total of 343,000 from holding GemVaxKAEL CoLtd or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoon Anatech Co vs. GemVaxKAEL CoLtd
Performance |
| Timeline |
| Dongwoon Anatech |
| GemVaxKAEL CoLtd |
Dongwoon Anatech and GemVaxKAEL CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoon Anatech and GemVaxKAEL CoLtd
The main advantage of trading using opposite Dongwoon Anatech and GemVaxKAEL CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoon Anatech position performs unexpectedly, GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd will offset losses from the drop in GemVaxKAEL CoLtd's long position.| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
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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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