Correlation Between SS TECH and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both SS TECH and DONGKUK TED 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 SS TECH and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and DONGKUK TED METAL, you can compare the effects of market volatilities on SS TECH and DONGKUK TED 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 SS TECH with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and DONGKUK TED.
Diversification Opportunities for SS TECH and DONGKUK TED
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 101490 and DONGKUK is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL and SS TECH 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 SS TECH are associated (or correlated) with DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of SS TECH i.e., SS TECH and DONGKUK TED go up and down completely randomly.
Pair Corralation between SS TECH and DONGKUK TED
Assuming the 90 days trading horizon SS TECH is expected to generate 1.48 times more return on investment than DONGKUK TED. However, SS TECH is 1.48 times more volatile than DONGKUK TED METAL. It trades about -0.01 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.02 per unit of risk. If you would invest 3,494,077 in SS TECH on October 30, 2024 and sell it today you would lose (404,077) from holding SS TECH or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. DONGKUK TED METAL
Performance |
| Timeline |
| SS TECH |
| DONGKUK TED METAL |
SS TECH and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and DONGKUK TED
The main advantage of trading using opposite SS TECH and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| SS TECH vs. Samsung Electronics Co | SS TECH vs. Samsung Electronics Co | SS TECH vs. SK Hynix | SS TECH vs. HMM Co |
| DONGKUK TED vs. Nice Information Telecommunication | DONGKUK TED vs. Kukil Metal Co | DONGKUK TED vs. Dongbang Transport Logistics | DONGKUK TED vs. GS Retail 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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