Correlation Between DONGKUK TED and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on DONGKUK TED and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Daewoo SBI.
Diversification Opportunities for DONGKUK TED and Daewoo SBI
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DONGKUK and Daewoo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Daewoo SBI go up and down completely randomly.
Pair Corralation between DONGKUK TED and Daewoo SBI
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.66 times more return on investment than Daewoo SBI. However, DONGKUK TED METAL is 1.51 times less risky than Daewoo SBI. It trades about 0.37 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.05 per unit of risk. If you would invest 607,000 in DONGKUK TED METAL on December 4, 2024 and sell it today you would earn a total of 73,000 from holding DONGKUK TED METAL or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Daewoo SBI SPAC
Performance |
| Timeline |
| DONGKUK TED METAL |
| Daewoo SBI SPAC |
DONGKUK TED and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Daewoo SBI
The main advantage of trading using opposite DONGKUK TED and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| DONGKUK TED vs. Innowireless Co | DONGKUK TED vs. Samsung Publishing Co | DONGKUK TED vs. Bohae Brewery | DONGKUK TED vs. Echomarketing CoLtd |
| Daewoo SBI vs. SS TECH | Daewoo SBI vs. Hyundai Industrial Co | Daewoo SBI vs. Clean Science co | Daewoo SBI vs. Dongwoon Anatech 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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