Correlation Between SundayToz Corp and Dong-A Steel
Can any of the company-specific risk be diversified away by investing in both SundayToz Corp and Dong-A Steel 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 SundayToz Corp and Dong-A Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SundayToz Corp and Dong A Steel Technology, you can compare the effects of market volatilities on SundayToz Corp and Dong-A Steel 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 SundayToz Corp with a short position of Dong-A Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SundayToz Corp and Dong-A Steel.
Diversification Opportunities for SundayToz Corp and Dong-A Steel
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SundayToz and Dong-A is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SundayToz Corp and Dong A Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dong A Steel and SundayToz Corp 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 SundayToz Corp are associated (or correlated) with Dong-A Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dong A Steel has no effect on the direction of SundayToz Corp i.e., SundayToz Corp and Dong-A Steel go up and down completely randomly.
Pair Corralation between SundayToz Corp and Dong-A Steel
Assuming the 90 days trading horizon SundayToz Corp is expected to generate 1.29 times more return on investment than Dong-A Steel. However, SundayToz Corp is 1.29 times more volatile than Dong A Steel Technology. It trades about 0.13 of its potential returns per unit of risk. Dong A Steel Technology is currently generating about 0.13 per unit of risk. If you would invest 737,000 in SundayToz Corp on November 27, 2024 and sell it today you would earn a total of 36,000 from holding SundayToz Corp or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SundayToz Corp vs. Dong A Steel Technology
Performance |
| Timeline |
| SundayToz Corp |
| Dong A Steel |
SundayToz Corp and Dong-A Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SundayToz Corp and Dong-A Steel
The main advantage of trading using opposite SundayToz Corp and Dong-A Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SundayToz Corp position performs unexpectedly, Dong-A Steel 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 Dong-A Steel will offset losses from the drop in Dong-A Steel's long position.| SundayToz Corp vs. Com2uS | SundayToz Corp vs. NEOWIZ | SundayToz Corp vs. Wemade CoLtd | SundayToz Corp vs. Busan Industrial Co |
| Dong-A Steel vs. DB Financial Investment | Dong-A Steel vs. Sangsangin Investment Securities | Dong-A Steel vs. SBI Investment KOREA | Dong-A Steel vs. Eugene 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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