Correlation Between Dongkuk Structures and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Dongkuk Structures and Sangsangin Investment 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 Dongkuk Structures and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongkuk Structures Construction and Sangsangin Investment Securities, you can compare the effects of market volatilities on Dongkuk Structures and Sangsangin Investment 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 Dongkuk Structures with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongkuk Structures and Sangsangin Investment.
Diversification Opportunities for Dongkuk Structures and Sangsangin Investment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongkuk and Sangsangin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dongkuk Structures Constructio and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and Dongkuk Structures 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 Dongkuk Structures Construction are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Dongkuk Structures i.e., Dongkuk Structures and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Dongkuk Structures and Sangsangin Investment
Assuming the 90 days trading horizon Dongkuk Structures Construction is expected to under-perform the Sangsangin Investment. In addition to that, Dongkuk Structures is 2.29 times more volatile than Sangsangin Investment Securities. It trades about -0.1 of its total potential returns per unit of risk. Sangsangin Investment Securities is currently generating about 0.09 per unit of volatility. If you would invest 42,500 in Sangsangin Investment Securities on October 30, 2024 and sell it today you would earn a total of 500.00 from holding Sangsangin Investment Securities or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongkuk Structures Constructio vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Dongkuk Structures |
| Sangsangin Investment |
Dongkuk Structures and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongkuk Structures and Sangsangin Investment
The main advantage of trading using opposite Dongkuk Structures and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongkuk Structures position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| Dongkuk Structures vs. Lotte Data Communication | Dongkuk Structures vs. Sangsin Energy Display | Dongkuk Structures vs. Inzi Display CoLtd | Dongkuk Structures vs. Daishin Information Communications |
| Sangsangin Investment vs. Spolytech Co | Sangsangin Investment vs. Daiyang Metal Co | Sangsangin Investment vs. Dongwoon Anatech Co | Sangsangin Investment vs. FNSTech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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