Correlation Between EV Advanced and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both EV Advanced and DONGKUK TED 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 EV Advanced and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EV Advanced Material and DONGKUK TED METAL, you can compare the effects of market volatilities on EV Advanced and DONGKUK TED 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 EV Advanced with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of EV Advanced and DONGKUK TED.
Diversification Opportunities for EV Advanced and DONGKUK TED
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 131400 and DONGKUK is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding EV Advanced Material and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL and EV Advanced 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 EV Advanced Material are associated (or correlated) with DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of EV Advanced i.e., EV Advanced and DONGKUK TED go up and down completely randomly.
Pair Corralation between EV Advanced and DONGKUK TED
Assuming the 90 days trading horizon EV Advanced is expected to generate 4.23 times less return on investment than DONGKUK TED. In addition to that, EV Advanced is 1.58 times more volatile than DONGKUK TED METAL. It trades about 0.04 of its total potential returns per unit of risk. DONGKUK TED METAL is currently generating about 0.3 per unit of volatility. If you would invest 596,000 in DONGKUK TED METAL on November 1, 2024 and sell it today you would earn a total of 38,000 from holding DONGKUK TED METAL or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EV Advanced Material vs. DONGKUK TED METAL
Performance |
| Timeline |
| EV Advanced Material |
| DONGKUK TED METAL |
EV Advanced and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EV Advanced and DONGKUK TED
The main advantage of trading using opposite EV Advanced and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EV Advanced position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| EV Advanced vs. Samsung Electronics Co | EV Advanced vs. Samsung Electronics Co | EV Advanced vs. SK Hynix | EV Advanced vs. HMM Co |
| DONGKUK TED vs. Sempio Foods Co | DONGKUK TED vs. EV Advanced Material | DONGKUK TED vs. Hana Materials | DONGKUK TED vs. LAKE MATERIALS LTD |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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