Correlation Between DONGKUK TED and PanGen Biotech
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and PanGen Biotech 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 PanGen Biotech 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 PanGen Biotech, you can compare the effects of market volatilities on DONGKUK TED and PanGen Biotech 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 PanGen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and PanGen Biotech.
Diversification Opportunities for DONGKUK TED and PanGen Biotech
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DONGKUK and PanGen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and PanGen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PanGen Biotech 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 PanGen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PanGen Biotech has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and PanGen Biotech go up and down completely randomly.
Pair Corralation between DONGKUK TED and PanGen Biotech
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the PanGen Biotech. But the stock apears to be less risky and, when comparing its historical volatility, DONGKUK TED METAL is 1.2 times less risky than PanGen Biotech. The stock trades about -0.09 of its potential returns per unit of risk. The PanGen Biotech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 635,000 in PanGen Biotech on October 9, 2024 and sell it today you would lose (48,000) from holding PanGen Biotech or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.17% |
| Values | Daily Returns |
DONGKUK TED METAL vs. PanGen Biotech
Performance |
| Timeline |
| DONGKUK TED METAL |
| PanGen Biotech |
DONGKUK TED and PanGen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and PanGen Biotech
The main advantage of trading using opposite DONGKUK TED and PanGen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, PanGen Biotech 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 PanGen Biotech will offset losses from the drop in PanGen Biotech's long position.| DONGKUK TED vs. LG Electronics Pfd | DONGKUK TED vs. Infinitt Healthcare Co | DONGKUK TED vs. Digital Power Communications | DONGKUK TED vs. Aprogen Healthcare Games |
| PanGen Biotech vs. Hanjin Transportation Co | PanGen Biotech vs. Kisan Telecom Co | PanGen Biotech vs. BIT Computer Co | PanGen Biotech vs. Korea Computer |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |