Correlation Between DONGKUK COATED and MetaLabs
Can any of the company-specific risk be diversified away by investing in both DONGKUK COATED and MetaLabs 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 COATED and MetaLabs 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 MetaLabs Co, you can compare the effects of market volatilities on DONGKUK COATED and MetaLabs 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 COATED with a short position of MetaLabs. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK COATED and MetaLabs.
Diversification Opportunities for DONGKUK COATED and MetaLabs
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DONGKUK and MetaLabs is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and MetaLabs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetaLabs and DONGKUK COATED 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 MetaLabs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetaLabs has no effect on the direction of DONGKUK COATED i.e., DONGKUK COATED and MetaLabs go up and down completely randomly.
Pair Corralation between DONGKUK COATED and MetaLabs
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the MetaLabs. But the stock apears to be less risky and, when comparing its historical volatility, DONGKUK TED METAL is 1.4 times less risky than MetaLabs. The stock trades about -0.05 of its potential returns per unit of risk. The MetaLabs Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 139,100 in MetaLabs Co on September 18, 2024 and sell it today you would lose (600.00) from holding MetaLabs Co or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
DONGKUK TED METAL vs. MetaLabs Co
Performance |
| Timeline |
| DONGKUK TED METAL |
| MetaLabs |
DONGKUK COATED and MetaLabs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK COATED and MetaLabs
The main advantage of trading using opposite DONGKUK COATED and MetaLabs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK COATED position performs unexpectedly, MetaLabs 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 MetaLabs will offset losses from the drop in MetaLabs' long position.| DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. LG Energy Solution | DONGKUK COATED vs. SK Hynix |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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