Correlation Between DONGKUK TED and Seers Technology
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Seers Technology 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 Seers Technology 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 Seers Technology, you can compare the effects of market volatilities on DONGKUK TED and Seers Technology 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 Seers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Seers Technology.
Diversification Opportunities for DONGKUK TED and Seers Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DONGKUK and Seers is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Seers Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seers Technology 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 Seers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seers Technology has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Seers Technology go up and down completely randomly.
Pair Corralation between DONGKUK TED and Seers Technology
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.51 times more return on investment than Seers Technology. However, DONGKUK TED METAL is 1.96 times less risky than Seers Technology. It trades about 0.22 of its potential returns per unit of risk. Seers Technology is currently generating about -0.12 per unit of risk. If you would invest 630,000 in DONGKUK TED METAL on December 1, 2024 and sell it today you would earn a total of 50,000 from holding DONGKUK TED METAL or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Seers Technology
Performance |
| Timeline |
| DONGKUK TED METAL |
| Seers Technology |
DONGKUK TED and Seers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Seers Technology
The main advantage of trading using opposite DONGKUK TED and Seers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Seers Technology 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 Seers Technology will offset losses from the drop in Seers Technology's long position.| DONGKUK TED vs. Songwon Industrial 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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