Correlation Between Samyung Trading and DB Financial
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and DB Financial 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 Samyung Trading and DB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyung Trading Co and DB Financial Investment, you can compare the effects of market volatilities on Samyung Trading and DB Financial 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 Samyung Trading with a short position of DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and DB Financial.
Diversification Opportunities for Samyung Trading and DB Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyung and 016610 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and DB Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Financial Investment and Samyung Trading 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 Samyung Trading Co are associated (or correlated) with DB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Financial Investment has no effect on the direction of Samyung Trading i.e., Samyung Trading and DB Financial go up and down completely randomly.
Pair Corralation between Samyung Trading and DB Financial
Assuming the 90 days trading horizon Samyung Trading is expected to generate 1.55 times less return on investment than DB Financial. But when comparing it to its historical volatility, Samyung Trading Co is 2.98 times less risky than DB Financial. It trades about 0.18 of its potential returns per unit of risk. DB Financial Investment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 535,000 in DB Financial Investment on September 5, 2024 and sell it today you would earn a total of 20,000 from holding DB Financial Investment or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. DB Financial Investment
Performance |
| Timeline |
| Samyung Trading |
| DB Financial Investment |
Samyung Trading and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and DB Financial
The main advantage of trading using opposite Samyung Trading and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, DB Financial 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 DB Financial will offset losses from the drop in DB Financial's long position.| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
| DB Financial vs. Dongjin Semichem Co | DB Financial vs. AhnLab Inc | DB Financial vs. Posco ICT | DB Financial vs. CJ ENM |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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