Correlation Between Dongil Metal and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Daishin Balance 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 Daishin Balance 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 Daishin Balance No, you can compare the effects of market volatilities on Dongil Metal and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Daishin Balance.
Diversification Opportunities for Dongil Metal and Daishin Balance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongil and Daishin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Daishin Balance No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No has no effect on the direction of Dongil Metal i.e., Dongil Metal and Daishin Balance go up and down completely randomly.
Pair Corralation between Dongil Metal and Daishin Balance
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.37 times more return on investment than Daishin Balance. However, Dongil Metal Co is 2.7 times less risky than Daishin Balance. It trades about -0.12 of its potential returns per unit of risk. Daishin Balance No is currently generating about -0.09 per unit of risk. If you would invest 851,000 in Dongil Metal Co on September 13, 2024 and sell it today you would lose (32,000) from holding Dongil Metal Co or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Daishin Balance No
Performance |
| Timeline |
| Dongil Metal |
| Daishin Balance No |
Dongil Metal and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Daishin Balance
The main advantage of trading using opposite Dongil Metal and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Dongil Metal vs. LG Chemicals | Dongil Metal vs. POSCO Holdings | Dongil Metal vs. Hanwha Solutions | Dongil Metal vs. Lotte Chemical Corp |
| Daishin Balance vs. Korean Reinsurance Co | Daishin Balance vs. CU Tech Corp | Daishin Balance vs. Digital Power Communications | Daishin Balance vs. Lotte Non Life Insurance |
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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