Correlation Between Dongil Metal and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Shinil Industrial 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 Dongil Metal and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and Shinil Industrial Co, you can compare the effects of market volatilities on Dongil Metal and Shinil Industrial 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 Dongil Metal with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Shinil Industrial.
Diversification Opportunities for Dongil Metal and Shinil Industrial
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongil and Shinil is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and Dongil Metal 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 Dongil Metal Co are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of Dongil Metal i.e., Dongil Metal and Shinil Industrial go up and down completely randomly.
Pair Corralation between Dongil Metal and Shinil Industrial
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 2.91 times more return on investment than Shinil Industrial. However, Dongil Metal is 2.91 times more volatile than Shinil Industrial Co. It trades about 0.0 of its potential returns per unit of risk. Shinil Industrial Co is currently generating about -0.01 per unit of risk. If you would invest 809,000 in Dongil Metal Co on November 9, 2024 and sell it today you would lose (5,000) from holding Dongil Metal Co or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Shinil Industrial Co
Performance |
| Timeline |
| Dongil Metal |
| Shinil Industrial |
Dongil Metal and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Shinil Industrial
The main advantage of trading using opposite Dongil Metal and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Shinil Industrial 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| Dongil Metal vs. Soulbrain Holdings Co | Dongil Metal vs. Wonik Ips Co | Dongil Metal vs. TES Co | Dongil Metal vs. Dongjin Semichem Co |
| Shinil Industrial vs. Tae Kyung Chemical | Shinil Industrial vs. Namhae Chemical | Shinil Industrial vs. Kumho Petro Chemical | Shinil Industrial vs. BGF 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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