Correlation Between DONGKUK TED and OLIPASS
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and OLIPASS 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 OLIPASS 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 OLIPASS, you can compare the effects of market volatilities on DONGKUK TED and OLIPASS 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 OLIPASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and OLIPASS.
Diversification Opportunities for DONGKUK TED and OLIPASS
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DONGKUK and OLIPASS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and OLIPASS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLIPASS 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 OLIPASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLIPASS has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and OLIPASS go up and down completely randomly.
Pair Corralation between DONGKUK TED and OLIPASS
Assuming the 90 days trading horizon DONGKUK TED is expected to generate 1.35 times less return on investment than OLIPASS. But when comparing it to its historical volatility, DONGKUK TED METAL is 3.22 times less risky than OLIPASS. It trades about 0.3 of its potential returns per unit of risk. OLIPASS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 228,000 in OLIPASS on November 28, 2024 and sell it today you would earn a total of 25,000 from holding OLIPASS or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. OLIPASS
Performance |
| Timeline |
| DONGKUK TED METAL |
| OLIPASS |
DONGKUK TED and OLIPASS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and OLIPASS
The main advantage of trading using opposite DONGKUK TED and OLIPASS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, OLIPASS 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 OLIPASS will offset losses from the drop in OLIPASS's long position.| DONGKUK TED vs. Jin Air Co | DONGKUK TED vs. Nable Communications | DONGKUK TED vs. Mobileleader CoLtd | DONGKUK TED vs. Seoul Food Industrial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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