Correlation Between Dongil Metal and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Myoung Shin 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 Myoung Shin 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 Myoung Shin Industrial, you can compare the effects of market volatilities on Dongil Metal and Myoung Shin 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 Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Myoung Shin.
Diversification Opportunities for Dongil Metal and Myoung Shin
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongil and Myoung is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin 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 Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Dongil Metal i.e., Dongil Metal and Myoung Shin go up and down completely randomly.
Pair Corralation between Dongil Metal and Myoung Shin
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.36 times more return on investment than Myoung Shin. However, Dongil Metal Co is 2.8 times less risky than Myoung Shin. It trades about -0.04 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.04 per unit of risk. If you would invest 866,570 in Dongil Metal Co on October 17, 2024 and sell it today you would lose (54,570) from holding Dongil Metal Co or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| Dongil Metal |
| Myoung Shin Industrial |
Dongil Metal and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Myoung Shin
The main advantage of trading using opposite Dongil Metal and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Dongil Metal vs. Grand Korea Leisure | Dongil Metal vs. Insung Information Co | Dongil Metal vs. Daou Data Corp | Dongil Metal vs. LG Household Healthcare |
| Myoung Shin vs. Dongil Metal Co | Myoung Shin vs. Kbi Metal Co | Myoung Shin vs. Eagle Veterinary Technology | Myoung Shin vs. Dongil 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |