Correlation Between Dongbang Ship and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Dongbang Ship and Infinitt Healthcare 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 Infinitt Healthcare 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 Infinitt Healthcare Co, you can compare the effects of market volatilities on Dongbang Ship and Infinitt Healthcare 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 Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Ship and Infinitt Healthcare.
Diversification Opportunities for Dongbang Ship and Infinitt Healthcare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongbang and Infinitt is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Ship Machinery and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare 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 Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Dongbang Ship i.e., Dongbang Ship and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Dongbang Ship and Infinitt Healthcare
Assuming the 90 days trading horizon Dongbang Ship Machinery is expected to generate 2.36 times more return on investment than Infinitt Healthcare. However, Dongbang Ship is 2.36 times more volatile than Infinitt Healthcare Co. It trades about -0.09 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.22 per unit of risk. If you would invest 337,500 in Dongbang Ship Machinery on October 15, 2024 and sell it today you would lose (13,000) from holding Dongbang Ship Machinery or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Ship Machinery vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Dongbang Ship Machinery |
| Infinitt Healthcare |
Dongbang Ship and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Ship and Infinitt Healthcare
The main advantage of trading using opposite Dongbang Ship and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Ship position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Dongbang Ship vs. ITM Semiconductor Co | Dongbang Ship vs. ABCO Electronics Co | Dongbang Ship vs. Mirai Semiconductors Co | Dongbang Ship vs. Shinhan Inverse Silver |
| Infinitt Healthcare vs. Woorim Machinery Co | Infinitt Healthcare vs. Sungchang Autotech Co | Infinitt Healthcare vs. Dongbang Ship Machinery | Infinitt Healthcare vs. Techwing |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |