Correlation Between DONGKUK TED and OCI

Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and OCI 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 OCI 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 OCI Co, you can compare the effects of market volatilities on DONGKUK TED and OCI 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 OCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and OCI.

Diversification Opportunities for DONGKUK TED and OCI

0.0

Correlation Coefficient

DONGKUK TED  OCI

Pay attention - limited upside

The 3 months correlation between DONGKUK and OCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and OCI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI Co 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 OCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI Co has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and OCI go up and down completely randomly.

Pair Corralation between DONGKUK TED and OCI

If you would invest (100.00) in OCI Co on October 7, 2024 and sell it today you would earn a total of  100.00  from holding OCI Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DONGKUK TED METAL  vs.  OCI Co

DONGKUK TED METAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DONGKUK TED METAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

OCI Co

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OCI Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, OCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DONGKUK TED and OCI

The main advantage of trading using opposite DONGKUK TED and OCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, OCI 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 OCI will offset losses from the drop in OCI's long position.

The idea behind DONGKUK TED METAL and OCI Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.