Correlation Between Wireless Power and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Dongbu Insurance 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 Wireless Power and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and Dongbu Insurance Co, you can compare the effects of market volatilities on Wireless Power and Dongbu Insurance 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 Wireless Power with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Dongbu Insurance.
Diversification Opportunities for Wireless Power and Dongbu Insurance
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wireless and Dongbu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Wireless Power i.e., Wireless Power and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Wireless Power and Dongbu Insurance
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 1.5 times more return on investment than Dongbu Insurance. However, Wireless Power is 1.5 times more volatile than Dongbu Insurance Co. It trades about 0.39 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about -0.08 per unit of risk. If you would invest 232,500 in Wireless Power Amplifier on October 12, 2024 and sell it today you would earn a total of 60,500 from holding Wireless Power Amplifier or generate 26.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Dongbu Insurance Co
Performance |
| Timeline |
| Wireless Power Amplifier |
| Dongbu Insurance |
Wireless Power and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Dongbu Insurance
The main advantage of trading using opposite Wireless Power and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Wireless Power vs. Korea Investment Holdings | Wireless Power vs. Heungkuk Metaltech CoLtd | Wireless Power vs. Kbi Metal Co | Wireless Power vs. Atinum Investment Co |
| Dongbu Insurance vs. Lotte Chilsung Beverage | Dongbu Insurance vs. Wireless Power Amplifier | Dongbu Insurance vs. Duksan Hi Metal | Dongbu Insurance vs. Hanjin Transportation 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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