Correlation Between Dongil Metal and Jeju Beer
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Jeju Beer 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 Jeju Beer 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 Jeju Beer Co, you can compare the effects of market volatilities on Dongil Metal and Jeju Beer 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 Jeju Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Jeju Beer.
Diversification Opportunities for Dongil Metal and Jeju Beer
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and Jeju is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Jeju Beer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Beer 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 Jeju Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Beer has no effect on the direction of Dongil Metal i.e., Dongil Metal and Jeju Beer go up and down completely randomly.
Pair Corralation between Dongil Metal and Jeju Beer
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.38 times more return on investment than Jeju Beer. However, Dongil Metal Co is 2.66 times less risky than Jeju Beer. It trades about 0.37 of its potential returns per unit of risk. Jeju Beer Co is currently generating about 0.05 per unit of risk. If you would invest 739,245 in Dongil Metal Co on October 9, 2024 and sell it today you would earn a total of 77,755 from holding Dongil Metal Co or generate 10.52% 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. Jeju Beer Co
Performance |
| Timeline |
| Dongil Metal |
| Jeju Beer |
Dongil Metal and Jeju Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Jeju Beer
The main advantage of trading using opposite Dongil Metal and Jeju Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Jeju Beer 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 Jeju Beer will offset losses from the drop in Jeju Beer's long position.| Dongil Metal vs. KTB Investment Securities | Dongil Metal vs. SCI Information Service | Dongil Metal vs. Daelim Trading Co | Dongil Metal vs. Daou Data Corp |
| Jeju Beer vs. ENERGYMACHINERY KOREA CoLtd | Jeju Beer vs. Nam Hwa Construction | Jeju Beer vs. Dongbang Ship Machinery | Jeju Beer vs. Lotte Chilsung Beverage |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |