Correlation Between LX Semicon and Dongwoon Anatech
Can any of the company-specific risk be diversified away by investing in both LX Semicon and Dongwoon Anatech 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 LX Semicon and Dongwoon Anatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LX Semicon Co and Dongwoon Anatech Co, you can compare the effects of market volatilities on LX Semicon and Dongwoon Anatech 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 LX Semicon with a short position of Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of LX Semicon and Dongwoon Anatech.
Diversification Opportunities for LX Semicon and Dongwoon Anatech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 108320 and Dongwoon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding LX Semicon Co and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech and LX Semicon 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 LX Semicon Co are associated (or correlated) with Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of LX Semicon i.e., LX Semicon and Dongwoon Anatech go up and down completely randomly.
Pair Corralation between LX Semicon and Dongwoon Anatech
Assuming the 90 days trading horizon LX Semicon Co is expected to under-perform the Dongwoon Anatech. But the stock apears to be less risky and, when comparing its historical volatility, LX Semicon Co is 1.22 times less risky than Dongwoon Anatech. The stock trades about -0.11 of its potential returns per unit of risk. The Dongwoon Anatech Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,959,000 in Dongwoon Anatech Co on November 7, 2024 and sell it today you would lose (17,000) from holding Dongwoon Anatech Co or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LX Semicon Co vs. Dongwoon Anatech Co
Performance |
| Timeline |
| LX Semicon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dongwoon Anatech |
LX Semicon and Dongwoon Anatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LX Semicon and Dongwoon Anatech
The main advantage of trading using opposite LX Semicon and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LX Semicon position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.| LX Semicon vs. Ssangyong Materials Corp | LX Semicon vs. SK IE Technology | LX Semicon vs. Hanil Chemical Ind | LX Semicon vs. Daou Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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