Correlation Between Dongil Metal and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Youngsin Metal 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 Youngsin Metal 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 Youngsin Metal Industrial, you can compare the effects of market volatilities on Dongil Metal and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Youngsin Metal.
Diversification Opportunities for Dongil Metal and Youngsin Metal
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongil and Youngsin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Dongil Metal i.e., Dongil Metal and Youngsin Metal go up and down completely randomly.
Pair Corralation between Dongil Metal and Youngsin Metal
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 1.53 times more return on investment than Youngsin Metal. However, Dongil Metal is 1.53 times more volatile than Youngsin Metal Industrial. It trades about 0.2 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.24 per unit of risk. If you would invest 814,000 in Dongil Metal Co on November 1, 2024 and sell it today you would earn a total of 65,000 from holding Dongil Metal Co or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Dongil Metal |
| Youngsin Metal Industrial |
Dongil Metal and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Youngsin Metal
The main advantage of trading using opposite Dongil Metal and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Dongil Metal vs. Youngsin Metal Industrial | Dongil Metal vs. DONGKUK TED METAL | Dongil Metal vs. Heungkuk Metaltech CoLtd | Dongil Metal vs. Kg Chemical |
| Youngsin Metal vs. Samsung Publishing Co | Youngsin Metal vs. FoodNamoo | Youngsin Metal vs. Sempio Foods Co | Youngsin Metal vs. YeaRimDang Publishing 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets |