Correlation Between DoubleU Games and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both DoubleU Games 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 DoubleU Games and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleU Games Co and DONGKUK TED METAL, you can compare the effects of market volatilities on DoubleU Games 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 DoubleU Games with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleU Games and DONGKUK TED.
Diversification Opportunities for DoubleU Games and DONGKUK TED
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DoubleU and DONGKUK is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding DoubleU Games Co 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 DoubleU Games 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 DoubleU Games Co 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 DoubleU Games i.e., DoubleU Games and DONGKUK TED go up and down completely randomly.
Pair Corralation between DoubleU Games and DONGKUK TED
Assuming the 90 days trading horizon DoubleU Games Co is expected to under-perform the DONGKUK TED. In addition to that, DoubleU Games is 1.27 times more volatile than DONGKUK TED METAL. It trades about -0.09 of its total potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.1 per unit of volatility. If you would invest 640,000 in DONGKUK TED METAL on August 31, 2024 and sell it today you would lose (23,000) from holding DONGKUK TED METAL or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DoubleU Games Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| DoubleU Games |
| DONGKUK TED METAL |
DoubleU Games and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DoubleU Games and DONGKUK TED
The main advantage of trading using opposite DoubleU Games and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleU Games 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.| DoubleU Games vs. DONGKUK TED METAL | DoubleU Games vs. Namhwa Industrial Co | DoubleU Games vs. Hyunwoo Industrial Co | DoubleU Games vs. Cheryong Industrial CoLtd |
| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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