Correlation Between Incar Financial and Dongbang Transport
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Dongbang Transport 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 Incar Financial and Dongbang Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Dongbang Transport Logistics, you can compare the effects of market volatilities on Incar Financial and Dongbang Transport 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 Incar Financial with a short position of Dongbang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Dongbang Transport.
Diversification Opportunities for Incar Financial and Dongbang Transport
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Incar and Dongbang is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Dongbang Transport Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Transport and Incar Financial 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 Incar Financial Service are associated (or correlated) with Dongbang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Transport has no effect on the direction of Incar Financial i.e., Incar Financial and Dongbang Transport go up and down completely randomly.
Pair Corralation between Incar Financial and Dongbang Transport
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 2.36 times more return on investment than Dongbang Transport. However, Incar Financial is 2.36 times more volatile than Dongbang Transport Logistics. It trades about 0.2 of its potential returns per unit of risk. Dongbang Transport Logistics is currently generating about -0.05 per unit of risk. If you would invest 512,000 in Incar Financial Service on August 25, 2024 and sell it today you would earn a total of 100,000 from holding Incar Financial Service or generate 19.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incar Financial Service vs. Dongbang Transport Logistics
Performance |
| Timeline |
| Incar Financial Service |
| Dongbang Transport |
Incar Financial and Dongbang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Dongbang Transport
The main advantage of trading using opposite Incar Financial and Dongbang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Dongbang Transport 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 Dongbang Transport will offset losses from the drop in Dongbang Transport's long position.| Incar Financial vs. Hanjinkal | Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. Mirae Asset Daewoo |
| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |