Correlation Between Access Bio and Dongyang
Can any of the company-specific risk be diversified away by investing in both Access Bio and Dongyang 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 Access Bio and Dongyang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and Dongyang EP, you can compare the effects of market volatilities on Access Bio and Dongyang 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 Access Bio with a short position of Dongyang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and Dongyang.
Diversification Opportunities for Access Bio and Dongyang
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Access and Dongyang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and Dongyang EP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongyang EP and Access Bio 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 Access Bio are associated (or correlated) with Dongyang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongyang EP has no effect on the direction of Access Bio i.e., Access Bio and Dongyang go up and down completely randomly.
Pair Corralation between Access Bio and Dongyang
Assuming the 90 days trading horizon Access Bio is expected to generate 6.49 times more return on investment than Dongyang. However, Access Bio is 6.49 times more volatile than Dongyang EP. It trades about 0.05 of its potential returns per unit of risk. Dongyang EP is currently generating about -0.11 per unit of risk. If you would invest 542,000 in Access Bio on November 3, 2024 and sell it today you would earn a total of 14,000 from holding Access Bio or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. Dongyang EP
Performance |
| Timeline |
| Access Bio |
| Dongyang EP |
Access Bio and Dongyang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and Dongyang
The main advantage of trading using opposite Access Bio and Dongyang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, Dongyang 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 Dongyang will offset losses from the drop in Dongyang's long position.| Access Bio vs. Korea Petro Chemical | Access Bio vs. Cuckoo Electronics Co | Access Bio vs. Kyung In Synthetic Corp | Access Bio vs. ABCO Electronics Co |
| Dongyang vs. Korean Air Lines | Dongyang vs. Handok Clean Tech | Dongyang vs. Clean Science co | Dongyang 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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