Correlation Between ENF Technology and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both ENF Technology and Dongil 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 ENF Technology and Dongil Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENF Technology Co and Dongil Technology, you can compare the effects of market volatilities on ENF Technology and Dongil 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 ENF Technology with a short position of Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENF Technology and Dongil Technology.
Diversification Opportunities for ENF Technology and Dongil Technology
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENF and Dongil is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ENF Technology Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology and ENF Technology 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 ENF Technology Co are associated (or correlated) with Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of ENF Technology i.e., ENF Technology and Dongil Technology go up and down completely randomly.
Pair Corralation between ENF Technology and Dongil Technology
Assuming the 90 days trading horizon ENF Technology Co is expected to generate 3.88 times more return on investment than Dongil Technology. However, ENF Technology is 3.88 times more volatile than Dongil Technology. It trades about 0.28 of its potential returns per unit of risk. Dongil Technology is currently generating about -0.02 per unit of risk. If you would invest 1,650,000 in ENF Technology Co on December 25, 2024 and sell it today you would earn a total of 1,040,000 from holding ENF Technology Co or generate 63.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.25% |
Values | Daily Returns |
ENF Technology Co vs. Dongil Technology
Performance |
Timeline |
ENF Technology |
Dongil Technology |
ENF Technology and Dongil Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENF Technology and Dongil Technology
The main advantage of trading using opposite ENF Technology and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENF Technology position performs unexpectedly, Dongil 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.ENF Technology vs. SS TECH | ENF Technology vs. Tokai Carbon Korea | ENF Technology vs. Soulbrain Holdings Co | ENF Technology vs. Wonik Ips Co |
Dongil Technology vs. Dongbang Transport Logistics | Dongil Technology vs. Eugene Investment Securities | Dongil Technology vs. Korea Investment Holdings | Dongil Technology vs. Miwon Chemicals 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |