Correlation Between Dongwoon Anatech and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Dongwoon Anatech and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on Dongwoon Anatech and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoon Anatech and Haesung DS.
Diversification Opportunities for Dongwoon Anatech and Haesung DS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongwoon and Haesung is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoon Anatech Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Dongwoon Anatech i.e., Dongwoon Anatech and Haesung DS go up and down completely randomly.
Pair Corralation between Dongwoon Anatech and Haesung DS
Assuming the 90 days trading horizon Dongwoon Anatech Co is expected to generate 1.28 times more return on investment than Haesung DS. However, Dongwoon Anatech is 1.28 times more volatile than Haesung DS Co. It trades about 0.23 of its potential returns per unit of risk. Haesung DS Co is currently generating about 0.28 per unit of risk. If you would invest 1,799,000 in Dongwoon Anatech Co on October 30, 2024 and sell it today you would earn a total of 241,000 from holding Dongwoon Anatech Co or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoon Anatech Co vs. Haesung DS Co
Performance |
| Timeline |
| Dongwoon Anatech |
| Haesung DS |
Dongwoon Anatech and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoon Anatech and Haesung DS
The main advantage of trading using opposite Dongwoon Anatech and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoon Anatech position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS'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 |
| Haesung DS vs. Pureun Mutual Savings | Haesung DS vs. BGF Retail Co | Haesung DS vs. Daol Investment Securities | Haesung DS vs. Woori Technology Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |