Correlation Between Dongil Metal and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Dongil Metal and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and BIT Computer.
Diversification Opportunities for Dongil Metal and BIT Computer
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongil and BIT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Dongil Metal i.e., Dongil Metal and BIT Computer go up and down completely randomly.
Pair Corralation between Dongil Metal and BIT Computer
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 1.31 times more return on investment than BIT Computer. However, Dongil Metal is 1.31 times more volatile than BIT Computer Co. It trades about 0.45 of its potential returns per unit of risk. BIT Computer Co is currently generating about -0.07 per unit of risk. If you would invest 743,046 in Dongil Metal Co on October 20, 2024 and sell it today you would earn a total of 116,954 from holding Dongil Metal Co or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. BIT Computer Co
Performance |
| Timeline |
| Dongil Metal |
| BIT Computer |
Dongil Metal and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and BIT Computer
The main advantage of trading using opposite Dongil Metal and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Dongil Metal vs. Daishin Information Communications | Dongil Metal vs. GS Retail Co | Dongil Metal vs. Dong A Steel Technology | Dongil Metal vs. Jeil Steel Mfg |
| BIT Computer vs. Nh Investment And | BIT Computer vs. Miwon Chemical | BIT Computer vs. E Investment Development | BIT Computer vs. KTB Investment Securities |
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.
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