Correlation Between Dynapack International and Koge Micro
Can any of the company-specific risk be diversified away by investing in both Dynapack International and Koge Micro 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 Dynapack International and Koge Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynapack International Technology and Koge Micro Tech, you can compare the effects of market volatilities on Dynapack International and Koge Micro 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 Dynapack International with a short position of Koge Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynapack International and Koge Micro.
Diversification Opportunities for Dynapack International and Koge Micro
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dynapack and Koge is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dynapack International Technol and Koge Micro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koge Micro Tech and Dynapack International 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 Dynapack International Technology are associated (or correlated) with Koge Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koge Micro Tech has no effect on the direction of Dynapack International i.e., Dynapack International and Koge Micro go up and down completely randomly.
Pair Corralation between Dynapack International and Koge Micro
Assuming the 90 days trading horizon Dynapack International Technology is expected to generate 5.0 times more return on investment than Koge Micro. However, Dynapack International is 5.0 times more volatile than Koge Micro Tech. It trades about 0.63 of its potential returns per unit of risk. Koge Micro Tech is currently generating about -0.21 per unit of risk. If you would invest 10,700 in Dynapack International Technology on September 2, 2024 and sell it today you would earn a total of 9,100 from holding Dynapack International Technology or generate 85.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynapack International Technol vs. Koge Micro Tech
Performance |
| Timeline |
| Dynapack International |
| Koge Micro Tech |
Dynapack International and Koge Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynapack International and Koge Micro
The main advantage of trading using opposite Dynapack International and Koge Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynapack International position performs unexpectedly, Koge Micro 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 Koge Micro will offset losses from the drop in Koge Micro's long position.| Dynapack International vs. Walsin Lihwa Corp | Dynapack International vs. Voltronic Power Technology | Dynapack International vs. Advanced Energy Solution | Dynapack International vs. Simplo Technology Co |
| Koge Micro vs. China Airlines | Koge Micro vs. Ever Clear Environmental Eng | Koge Micro vs. Tang Eng Iron | Koge Micro vs. Iron Force Industrial |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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