Correlation Between Dongbang Ship and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Dongbang Ship and KIWI Media 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 Dongbang Ship and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Ship Machinery and KIWI Media Group, you can compare the effects of market volatilities on Dongbang Ship and KIWI Media 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 Dongbang Ship with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Ship and KIWI Media.
Diversification Opportunities for Dongbang Ship and KIWI Media
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongbang and KIWI is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Ship Machinery and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Dongbang Ship 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 Dongbang Ship Machinery are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Dongbang Ship i.e., Dongbang Ship and KIWI Media go up and down completely randomly.
Pair Corralation between Dongbang Ship and KIWI Media
Assuming the 90 days trading horizon Dongbang Ship Machinery is expected to generate 0.31 times more return on investment than KIWI Media. However, Dongbang Ship Machinery is 3.22 times less risky than KIWI Media. It trades about 0.13 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.25 per unit of risk. If you would invest 305,500 in Dongbang Ship Machinery on October 29, 2024 and sell it today you would earn a total of 16,500 from holding Dongbang Ship Machinery or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Ship Machinery vs. KIWI Media Group
Performance |
| Timeline |
| Dongbang Ship Machinery |
| KIWI Media Group |
Dongbang Ship and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Ship and KIWI Media
The main advantage of trading using opposite Dongbang Ship and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Ship position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Dongbang Ship vs. Hanjin Transportation Co | Dongbang Ship vs. Hana Financial | Dongbang Ship vs. Incar Financial Service | Dongbang Ship vs. Dongbang Transport Logistics |
| KIWI Media vs. SV Investment | KIWI Media vs. Golden Bridge Investment | KIWI Media vs. Sungmoon Electronics Co | KIWI Media vs. Stic Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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