Correlation Between BGF Retail and Dongwoon Anatech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BGF Retail and Dongwoon Anatech 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 BGF Retail and Dongwoon Anatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and Dongwoon Anatech Co, you can compare the effects of market volatilities on BGF Retail and Dongwoon Anatech 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 BGF Retail with a short position of Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and Dongwoon Anatech.

Diversification Opportunities for BGF Retail and Dongwoon Anatech

BGFDongwoonDiversified AwayBGFDongwoonDiversified Away100%
-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between BGF and Dongwoon is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech and BGF Retail 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 BGF Retail Co are associated (or correlated) with Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of BGF Retail i.e., BGF Retail and Dongwoon Anatech go up and down completely randomly.

Pair Corralation between BGF Retail and Dongwoon Anatech

Assuming the 90 days trading horizon BGF Retail Co is expected to under-perform the Dongwoon Anatech. But the stock apears to be less risky and, when comparing its historical volatility, BGF Retail Co is 2.77 times less risky than Dongwoon Anatech. The stock trades about -0.05 of its potential returns per unit of risk. The Dongwoon Anatech Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  817,537  in Dongwoon Anatech Co on November 14, 2024 and sell it today you would earn a total of  1,178,463  from holding Dongwoon Anatech Co or generate 144.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.79%
ValuesDaily Returns

BGF Retail Co  vs.  Dongwoon Anatech Co

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-15-10-505
JavaScript chart by amCharts 3.21.15282330 094170
       Timeline  
BGF Retail 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BGF Retail Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BGF Retail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb100,000105,000110,000115,000
Dongwoon Anatech 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dongwoon Anatech Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dongwoon Anatech sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb15,00016,00017,00018,00019,00020,00021,000

BGF Retail and Dongwoon Anatech Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.23-2.42-1.61-0.80.01240.751.492.242.99 0.040.060.080.10
JavaScript chart by amCharts 3.21.15282330 094170
       Returns  

Pair Trading with BGF Retail and Dongwoon Anatech

The main advantage of trading using opposite BGF Retail and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.
The idea behind BGF Retail Co and Dongwoon Anatech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios