Correlation Between Carriesoft and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Carriesoft 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 Carriesoft and DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriesoft Co and DONGKUK TED METAL, you can compare the effects of market volatilities on Carriesoft 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 Carriesoft with a short position of DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriesoft and DONGKUK TED.
Diversification Opportunities for Carriesoft and DONGKUK TED
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carriesoft and DONGKUK is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Carriesoft 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 Carriesoft 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 Carriesoft 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 Carriesoft i.e., Carriesoft and DONGKUK TED go up and down completely randomly.
Pair Corralation between Carriesoft and DONGKUK TED
Assuming the 90 days trading horizon Carriesoft Co is expected to generate 1.86 times more return on investment than DONGKUK TED. However, Carriesoft is 1.86 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 -0.03 per unit of risk. If you would invest 459,000 in Carriesoft Co on September 3, 2024 and sell it today you would lose (68,000) from holding Carriesoft Co or give up 14.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriesoft Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| Carriesoft |
| DONGKUK TED METAL |
Carriesoft and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriesoft and DONGKUK TED
The main advantage of trading using opposite Carriesoft and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriesoft 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.| Carriesoft vs. Namhwa Industrial Co | Carriesoft vs. Next Entertainment World | Carriesoft vs. Tamul Multimedia Co | Carriesoft vs. Korea Shipbuilding Offshore |
| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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