Correlation Between Moadata and Dongsuh
Can any of the company-specific risk be diversified away by investing in both Moadata and Dongsuh 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 Moadata and Dongsuh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moadata Co and Dongsuh, you can compare the effects of market volatilities on Moadata and Dongsuh 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 Moadata with a short position of Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moadata and Dongsuh.
Diversification Opportunities for Moadata and Dongsuh
Modest diversification
The 3 months correlation between Moadata and Dongsuh is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Moadata Co and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh and Moadata 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 Moadata Co are associated (or correlated) with Dongsuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongsuh has no effect on the direction of Moadata i.e., Moadata and Dongsuh go up and down completely randomly.
Pair Corralation between Moadata and Dongsuh
Assuming the 90 days trading horizon Moadata Co is expected to under-perform the Dongsuh. But the stock apears to be less risky and, when comparing its historical volatility, Moadata Co is 1.4 times less risky than Dongsuh. The stock trades about -0.1 of its potential returns per unit of risk. The Dongsuh is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,700,000 in Dongsuh on September 5, 2024 and sell it today you would earn a total of 270,000 from holding Dongsuh or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moadata Co vs. Dongsuh
Performance |
| Timeline |
| Moadata |
| Dongsuh |
Moadata and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moadata and Dongsuh
The main advantage of trading using opposite Moadata and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moadata position performs unexpectedly, Dongsuh 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 Dongsuh will offset losses from the drop in Dongsuh's long position.| Moadata vs. Posco ICT | Moadata vs. Devsisters corporation | Moadata vs. Nice Information Telecommunication | Moadata vs. InfoBank |
| Dongsuh vs. Golden Bridge Investment | Dongsuh vs. NH Investment Securities | Dongsuh vs. Chorokbaem Healthcare Co | Dongsuh vs. Dongbang Transport Logistics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |