Correlation Between Dongbang Ship and Namu Tech
Can any of the company-specific risk be diversified away by investing in both Dongbang Ship and Namu Tech 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 Namu Tech 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 Namu Tech CoLtd, you can compare the effects of market volatilities on Dongbang Ship and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Ship and Namu Tech.
Diversification Opportunities for Dongbang Ship and Namu Tech
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongbang and Namu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Ship Machinery and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech CoLtd 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of Dongbang Ship i.e., Dongbang Ship and Namu Tech go up and down completely randomly.
Pair Corralation between Dongbang Ship and Namu Tech
Assuming the 90 days trading horizon Dongbang Ship Machinery is expected to generate 0.99 times more return on investment than Namu Tech. However, Dongbang Ship Machinery is 1.01 times less risky than Namu Tech. It trades about 0.15 of its potential returns per unit of risk. Namu Tech CoLtd is currently generating about -0.1 per unit of risk. If you would invest 272,000 in Dongbang Ship Machinery on October 1, 2024 and sell it today you would earn a total of 31,500 from holding Dongbang Ship Machinery or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Ship Machinery vs. Namu Tech CoLtd
Performance |
| Timeline |
| Dongbang Ship Machinery |
| Namu Tech CoLtd |
Dongbang Ship and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Ship and Namu Tech
The main advantage of trading using opposite Dongbang Ship and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Ship position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.| Dongbang Ship vs. Busan Industrial Co | Dongbang Ship vs. Busan Ind | Dongbang Ship vs. Mirae Asset Daewoo | Dongbang Ship vs. Shinhan WTI Futures |
| Namu Tech vs. Myoung Shin Industrial | Namu Tech vs. DSC Investment | Namu Tech vs. KTB Investment Securities | Namu Tech vs. Seoyon Topmetal 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |