Correlation Between DONGKUK TED and STCube
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and STCube 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 STCube 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 STCube Inc, you can compare the effects of market volatilities on DONGKUK TED and STCube 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 STCube. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and STCube.
Diversification Opportunities for DONGKUK TED and STCube
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DONGKUK and STCube is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and STCube Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCube Inc 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 STCube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCube Inc has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and STCube go up and down completely randomly.
Pair Corralation between DONGKUK TED and STCube
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the STCube. But the stock apears to be less risky and, when comparing its historical volatility, DONGKUK TED METAL is 1.99 times less risky than STCube. The stock trades about -0.08 of its potential returns per unit of risk. The STCube Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,608,412 in STCube Inc on December 1, 2024 and sell it today you would lose (828,412) from holding STCube Inc or give up 51.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.28% |
| Values | Daily Returns |
DONGKUK TED METAL vs. STCube Inc
Performance |
| Timeline |
| DONGKUK TED METAL |
| STCube Inc |
DONGKUK TED and STCube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and STCube
The main advantage of trading using opposite DONGKUK TED and STCube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, STCube 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 STCube will offset losses from the drop in STCube's long position.| DONGKUK TED vs. Songwon Industrial Co | DONGKUK TED vs. Daejung Chemicals Metals | DONGKUK TED vs. Genie Music | DONGKUK TED vs. Sejong Industrial |
| STCube vs. ECSTELECOM Co | STCube vs. SK Telecom Co | STCube vs. Daewoo Electronic Components | STCube vs. KT Submarine Telecom |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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