Correlation Between N2Tech and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both N2Tech 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 N2Tech and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N2Tech Co and DONGKUK TED METAL, you can compare the effects of market volatilities on N2Tech 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 N2Tech with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of N2Tech and DONGKUK TED.
Diversification Opportunities for N2Tech and DONGKUK TED
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between N2Tech and DONGKUK is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding N2Tech 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 N2Tech 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 N2Tech 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 N2Tech i.e., N2Tech and DONGKUK TED go up and down completely randomly.
Pair Corralation between N2Tech and DONGKUK TED
Assuming the 90 days trading horizon N2Tech Co is expected to generate 1.82 times more return on investment than DONGKUK TED. However, N2Tech is 1.82 times more volatile than DONGKUK TED METAL. It trades about 0.0 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 70,700 in N2Tech Co on October 14, 2024 and sell it today you would lose (25,300) from holding N2Tech Co or give up 35.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.88% |
| Values | Daily Returns |
N2Tech Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| N2Tech |
| DONGKUK TED METAL |
N2Tech and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N2Tech and DONGKUK TED
The main advantage of trading using opposite N2Tech and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N2Tech 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.| N2Tech vs. Iljin Display | N2Tech vs. Chorokbaem Healthcare Co | N2Tech vs. Infinitt Healthcare Co | N2Tech vs. INFINITT Healthcare 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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