Correlation Between SK Bioscience and Dongsuh
Can any of the company-specific risk be diversified away by investing in both SK Bioscience 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 SK Bioscience and Dongsuh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and Dongsuh, you can compare the effects of market volatilities on SK Bioscience 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 SK Bioscience with a short position of Dongsuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and Dongsuh.
Diversification Opportunities for SK Bioscience and Dongsuh
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 302440 and Dongsuh is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and Dongsuh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongsuh and SK Bioscience 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 SK Bioscience 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 SK Bioscience i.e., SK Bioscience and Dongsuh go up and down completely randomly.
Pair Corralation between SK Bioscience and Dongsuh
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the Dongsuh. But the stock apears to be less risky and, when comparing its historical volatility, SK Bioscience Co is 1.39 times less risky than Dongsuh. The stock trades about -0.05 of its potential returns per unit of risk. The Dongsuh is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,739,132 in Dongsuh on September 12, 2024 and sell it today you would earn a total of 1,105,868 from holding Dongsuh or generate 63.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. Dongsuh
Performance |
| Timeline |
| SK Bioscience |
| Dongsuh |
SK Bioscience and Dongsuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and Dongsuh
The main advantage of trading using opposite SK Bioscience and Dongsuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience 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.| SK Bioscience vs. Samsung Biologics Co | SK Bioscience vs. Sk Biopharmaceuticals Co | SK Bioscience vs. ABL Bio | SK Bioscience vs. Green Cross Lab |
| Dongsuh vs. Nable Communications | Dongsuh vs. Vitzro Tech Co | Dongsuh vs. Korea Information Communications | Dongsuh vs. ITM Semiconductor 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 Stocks Directory module to find actively traded stocks across global markets.
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