Correlation Between MS Autotech and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Dongil Technology 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 MS Autotech and Dongil Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Dongil Technology, you can compare the effects of market volatilities on MS Autotech and Dongil Technology 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 MS Autotech with a short position of Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Dongil Technology.
Diversification Opportunities for MS Autotech and Dongil Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 123040 and Dongil is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology and MS Autotech 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 MS Autotech CoLtd are associated (or correlated) with Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of MS Autotech i.e., MS Autotech and Dongil Technology go up and down completely randomly.
Pair Corralation between MS Autotech and Dongil Technology
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to under-perform the Dongil Technology. In addition to that, MS Autotech is 1.39 times more volatile than Dongil Technology. It trades about -0.12 of its total potential returns per unit of risk. Dongil Technology is currently generating about -0.03 per unit of volatility. If you would invest 1,221,360 in Dongil Technology on September 1, 2024 and sell it today you would lose (169,360) from holding Dongil Technology or give up 13.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Dongil Technology
Performance |
| Timeline |
| MS Autotech CoLtd |
| Dongil Technology |
MS Autotech and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Dongil Technology
The main advantage of trading using opposite MS Autotech and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.| MS Autotech vs. LG Display | MS Autotech vs. Hyundai Motor | MS Autotech vs. Hyundai Motor Co | MS Autotech vs. Hyundai Motor Co |
| Dongil Technology vs. Dongsin Engineering Construction | Dongil Technology vs. Doosan Fuel Cell | Dongil Technology vs. Daishin Balance 1 | Dongil Technology vs. Total Soft Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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