Correlation Between DONGKUK TED and SEOWONINTECHCoLtd
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd, you can compare the effects of market volatilities on DONGKUK TED and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and SEOWONINTECHCoLtd.
Diversification Opportunities for DONGKUK TED and SEOWONINTECHCoLtd
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DONGKUK and SEOWONINTECHCoLtd is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and SEOWONINTECHCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOWONINTECHCoLtd has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and SEOWONINTECHCoLtd go up and down completely randomly.
Pair Corralation between DONGKUK TED and SEOWONINTECHCoLtd
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the SEOWONINTECHCoLtd. In addition to that, DONGKUK TED is 2.28 times more volatile than SEOWONINTECHCoLtd. It trades about -0.09 of its total potential returns per unit of risk. SEOWONINTECHCoLtd is currently generating about 0.01 per unit of volatility. If you would invest 516,628 in SEOWONINTECHCoLtd on October 30, 2024 and sell it today you would earn a total of 21,372 from holding SEOWONINTECHCoLtd or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.95% |
| Values | Daily Returns |
DONGKUK TED METAL vs. SEOWONINTECHCoLtd
Performance |
| Timeline |
| DONGKUK TED METAL |
| SEOWONINTECHCoLtd |
DONGKUK TED and SEOWONINTECHCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and SEOWONINTECHCoLtd
The main advantage of trading using opposite DONGKUK TED and SEOWONINTECHCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd will offset losses from the drop in SEOWONINTECHCoLtd's long position.| DONGKUK TED vs. Nice Information Telecommunication | DONGKUK TED vs. Kukil Metal Co | DONGKUK TED vs. Dongbang Transport Logistics | DONGKUK TED vs. GS Retail Co |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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