Correlation Between Dongil Metal and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Pureun Mutual 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 Pureun Mutual 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 Pureun Mutual Savings, you can compare the effects of market volatilities on Dongil Metal and Pureun Mutual 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 Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Pureun Mutual.
Diversification Opportunities for Dongil Metal and Pureun Mutual
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and Pureun is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings 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 Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Dongil Metal i.e., Dongil Metal and Pureun Mutual go up and down completely randomly.
Pair Corralation between Dongil Metal and Pureun Mutual
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.69 times more return on investment than Pureun Mutual. However, Dongil Metal Co is 1.45 times less risky than Pureun Mutual. It trades about 0.2 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about 0.04 per unit of risk. If you would invest 794,356 in Dongil Metal Co on October 23, 2024 and sell it today you would earn a total of 125,644 from holding Dongil Metal Co or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Dongil Metal |
| Pureun Mutual Savings |
Dongil Metal and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Pureun Mutual
The main advantage of trading using opposite Dongil Metal and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Dongil Metal vs. Genie Music | Dongil Metal vs. Barunson Entertainment Arts | Dongil Metal vs. Dongbang Transport Logistics | Dongil Metal vs. Mobileleader CoLtd |
| Pureun Mutual vs. PJ Metal Co | Pureun Mutual vs. Aprogen Healthcare Games | Pureun Mutual vs. Dongil Metal Co | Pureun Mutual vs. Namhwa Industrial 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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