Correlation Between Dongbang Transport and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and BNK 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 Dongbang Transport and BNK Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and BNK Financial Group, you can compare the effects of market volatilities on Dongbang Transport and BNK 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 Dongbang Transport with a short position of BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and BNK Financial.
Diversification Opportunities for Dongbang Transport and BNK Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongbang and BNK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group and Dongbang Transport 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 Dongbang Transport Logistics are associated (or correlated) with BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and BNK Financial go up and down completely randomly.
Pair Corralation between Dongbang Transport and BNK Financial
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the BNK Financial. But the stock apears to be less risky and, when comparing its historical volatility, Dongbang Transport Logistics is 1.07 times less risky than BNK Financial. The stock trades about -0.25 of its potential returns per unit of risk. The BNK Financial Group is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 1,040,000 in BNK Financial Group on November 7, 2024 and sell it today you would earn a total of 176,000 from holding BNK Financial Group or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. BNK Financial Group
Performance |
| Timeline |
| Dongbang Transport |
| BNK Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Dongbang Transport and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and BNK Financial
The main advantage of trading using opposite Dongbang Transport and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, BNK 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Jahwa Electron | Dongbang Transport vs. Wonbang Tech Co |
| BNK Financial vs. Shinhan Financial Group | BNK Financial vs. Woori Technology | BNK Financial vs. Dongbang Transport Logistics | BNK Financial vs. AeroSpace Technology of |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |