Correlation Between IQuest and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both IQuest and Dongil Technology 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 IQuest and Dongil Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQuest Co and Dongil Technology, you can compare the effects of market volatilities on IQuest and Dongil Technology 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 IQuest with a short position of Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQuest and Dongil Technology.
Diversification Opportunities for IQuest and Dongil Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IQuest and Dongil is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding IQuest Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology and IQuest 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 IQuest Co are associated (or correlated) with Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of IQuest i.e., IQuest and Dongil Technology go up and down completely randomly.
Pair Corralation between IQuest and Dongil Technology
Assuming the 90 days trading horizon IQuest Co is expected to generate 3.81 times more return on investment than Dongil Technology. However, IQuest is 3.81 times more volatile than Dongil Technology. It trades about 0.12 of its potential returns per unit of risk. Dongil Technology is currently generating about -0.28 per unit of risk. If you would invest 223,000 in IQuest Co on August 29, 2024 and sell it today you would earn a total of 19,500 from holding IQuest Co or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQuest Co vs. Dongil Technology
Performance |
| Timeline |
| IQuest |
| Dongil Technology |
IQuest and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQuest and Dongil Technology
The main advantage of trading using opposite IQuest and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQuest position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.| IQuest vs. iNtRON Biotechnology | IQuest vs. Ilji Technology Co | IQuest vs. Shinhan Inverse Silver | IQuest vs. Konan Technology |
| Dongil Technology vs. Korea Real Estate | Dongil Technology vs. Korea Ratings Co | Dongil Technology vs. IQuest Co | Dongil Technology vs. Wonbang Tech 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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