Correlation Between Dongkuk Structures and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Dongkuk Structures and Daelim Trading 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 Daelim Trading 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 Daelim Trading Co, you can compare the effects of market volatilities on Dongkuk Structures and Daelim Trading 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 Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongkuk Structures and Daelim Trading.
Diversification Opportunities for Dongkuk Structures and Daelim Trading
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongkuk and Daelim is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dongkuk Structures Constructio and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading 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 Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Dongkuk Structures i.e., Dongkuk Structures and Daelim Trading go up and down completely randomly.
Pair Corralation between Dongkuk Structures and Daelim Trading
Assuming the 90 days trading horizon Dongkuk Structures Construction is expected to generate 1.09 times more return on investment than Daelim Trading. However, Dongkuk Structures is 1.09 times more volatile than Daelim Trading Co. It trades about -0.03 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.05 per unit of risk. If you would invest 239,000 in Dongkuk Structures Construction on October 25, 2024 and sell it today you would lose (3,000) from holding Dongkuk Structures Construction or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongkuk Structures Constructio vs. Daelim Trading Co
Performance |
| Timeline |
| Dongkuk Structures |
| Daelim Trading |
Dongkuk Structures and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongkuk Structures and Daelim Trading
The main advantage of trading using opposite Dongkuk Structures and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongkuk Structures position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Dongkuk Structures vs. Korea Information Communications | Dongkuk Structures vs. Mobileleader CoLtd | Dongkuk Structures vs. Kbi Metal Co | Dongkuk Structures vs. GS Retail Co |
| Daelim Trading vs. LG Household Healthcare | Daelim Trading vs. Green Cross Medical | Daelim Trading vs. Seoul Electronics Telecom | Daelim Trading vs. Samyoung Electronics 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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