Correlation Between DONGKUK TED and PNC Technologies
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and PNC Technologies 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 PNC Technologies 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 PNC Technologies co, you can compare the effects of market volatilities on DONGKUK TED and PNC Technologies 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 PNC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and PNC Technologies.
Diversification Opportunities for DONGKUK TED and PNC Technologies
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DONGKUK and PNC is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and PNC Technologies co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Technologies 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 PNC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Technologies has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and PNC Technologies go up and down completely randomly.
Pair Corralation between DONGKUK TED and PNC Technologies
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 1.5 times more return on investment than PNC Technologies. However, DONGKUK TED is 1.5 times more volatile than PNC Technologies co. It trades about 0.38 of its potential returns per unit of risk. PNC Technologies co is currently generating about -0.08 per unit of risk. If you would invest 607,000 in DONGKUK TED METAL on December 4, 2024 and sell it today you would earn a total of 75,000 from holding DONGKUK TED METAL or generate 12.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
DONGKUK TED METAL vs. PNC Technologies co
Performance |
Timeline |
DONGKUK TED METAL |
PNC Technologies |
DONGKUK TED and PNC Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DONGKUK TED and PNC Technologies
The main advantage of trading using opposite DONGKUK TED and PNC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, PNC Technologies 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 PNC Technologies will offset losses from the drop in PNC Technologies' long position.DONGKUK TED vs. People Technology | DONGKUK TED vs. Woori Technology | DONGKUK TED vs. BIT Computer Co | DONGKUK TED vs. Sempio Foods Co |
PNC Technologies vs. KEPCO Engineering Construction | PNC Technologies vs. Kyeryong Construction Industrial | PNC Technologies vs. Youngbo Chemical Co | PNC Technologies vs. Hanwha Chemical Corp |
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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