Correlation Between DONGKUK TED and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Kisan Telecom 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 DONGKUK TED and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Kisan Telecom Co, you can compare the effects of market volatilities on DONGKUK TED and Kisan Telecom 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 DONGKUK TED with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Kisan Telecom.
Diversification Opportunities for DONGKUK TED and Kisan Telecom
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DONGKUK and Kisan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and DONGKUK TED 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 DONGKUK TED METAL are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Kisan Telecom go up and down completely randomly.
Pair Corralation between DONGKUK TED and Kisan Telecom
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.92 times more return on investment than Kisan Telecom. However, DONGKUK TED METAL is 1.08 times less risky than Kisan Telecom. It trades about 0.32 of its potential returns per unit of risk. Kisan Telecom Co is currently generating about 0.25 per unit of risk. If you would invest 589,000 in DONGKUK TED METAL on October 11, 2024 and sell it today you would earn a total of 51,000 from holding DONGKUK TED METAL or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Kisan Telecom Co
Performance |
| Timeline |
| DONGKUK TED METAL |
| Kisan Telecom |
DONGKUK TED and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Kisan Telecom
The main advantage of trading using opposite DONGKUK TED and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| DONGKUK TED vs. Hyundai Engineering Plastics | DONGKUK TED vs. SEOJEON ELECTRIC MACHINERY | DONGKUK TED vs. Solus Advanced Materials | DONGKUK TED vs. Dongkuk Structures Construction |
| Kisan Telecom vs. DONGKUK TED METAL | Kisan Telecom vs. Ilji Technology Co | Kisan Telecom vs. Eugene Technology CoLtd | Kisan Telecom vs. Korea Shipbuilding Offshore |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |