Correlation Between Dongil Metal and Booster
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Booster 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 Booster 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 Booster Co, you can compare the effects of market volatilities on Dongil Metal and Booster 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 Booster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Booster.
Diversification Opportunities for Dongil Metal and Booster
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongil and Booster is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Booster Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booster 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 Booster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booster has no effect on the direction of Dongil Metal i.e., Dongil Metal and Booster go up and down completely randomly.
Pair Corralation between Dongil Metal and Booster
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 2.41 times more return on investment than Booster. However, Dongil Metal is 2.41 times more volatile than Booster Co. It trades about 0.48 of its potential returns per unit of risk. Booster Co is currently generating about -0.07 per unit of risk. If you would invest 751,598 in Dongil Metal Co on October 23, 2024 and sell it today you would earn a total of 163,402 from holding Dongil Metal Co or generate 21.74% 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. Booster Co
Performance |
| Timeline |
| Dongil Metal |
| Booster |
Dongil Metal and Booster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Booster
The main advantage of trading using opposite Dongil Metal and Booster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Booster 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 Booster will offset losses from the drop in Booster'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 |
| Booster vs. Heungkuk Metaltech CoLtd | Booster vs. DoubleU Games Co | Booster vs. Duksan Hi Metal | Booster vs. Dongil Metal 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |