Correlation Between Narae Nanotech and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Narae Nanotech 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 Narae Nanotech and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Narae Nanotech Corp and DONGKUK TED METAL, you can compare the effects of market volatilities on Narae Nanotech 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 Narae Nanotech with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Narae Nanotech and DONGKUK TED.
Diversification Opportunities for Narae Nanotech and DONGKUK TED
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Narae and DONGKUK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Narae Nanotech Corp 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 Narae Nanotech 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 Narae Nanotech Corp 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 Narae Nanotech i.e., Narae Nanotech and DONGKUK TED go up and down completely randomly.
Pair Corralation between Narae Nanotech and DONGKUK TED
Assuming the 90 days trading horizon Narae Nanotech Corp is expected to generate 1.15 times more return on investment than DONGKUK TED. However, Narae Nanotech is 1.15 times more volatile than DONGKUK TED METAL. It trades about -0.04 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.09 per unit of risk. If you would invest 768,280 in Narae Nanotech Corp on October 14, 2024 and sell it today you would lose (408,280) from holding Narae Nanotech Corp or give up 53.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 79.88% |
| Values | Daily Returns |
Narae Nanotech Corp vs. DONGKUK TED METAL
Performance |
| Timeline |
| Narae Nanotech Corp |
| DONGKUK TED METAL |
Narae Nanotech and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Narae Nanotech and DONGKUK TED
The main advantage of trading using opposite Narae Nanotech and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Narae Nanotech 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.| Narae Nanotech vs. Aprogen Healthcare Games | Narae Nanotech vs. LEENO Industrial | Narae Nanotech vs. Formetal Co | Narae Nanotech vs. Hwasung Industrial Co |
| DONGKUK TED vs. Yura Tech Co | DONGKUK TED vs. Dongbu Insurance Co | DONGKUK TED vs. Narae Nanotech Corp | DONGKUK TED vs. N2Tech Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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