Correlation Between DB Insurance and Husteel
Can any of the company-specific risk be diversified away by investing in both DB Insurance and Husteel 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 DB Insurance and Husteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB Insurance Co and Husteel, you can compare the effects of market volatilities on DB Insurance and Husteel 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 DB Insurance with a short position of Husteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Husteel.
Diversification Opportunities for DB Insurance and Husteel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005830 and Husteel is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and Husteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husteel and DB Insurance 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 DB Insurance Co are associated (or correlated) with Husteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husteel has no effect on the direction of DB Insurance i.e., DB Insurance and Husteel go up and down completely randomly.
Pair Corralation between DB Insurance and Husteel
Assuming the 90 days trading horizon DB Insurance is expected to generate 3.26 times less return on investment than Husteel. In addition to that, DB Insurance is 1.3 times more volatile than Husteel. It trades about 0.01 of its total potential returns per unit of risk. Husteel is currently generating about 0.04 per unit of volatility. If you would invest 404,500 in Husteel on November 7, 2024 and sell it today you would earn a total of 25,500 from holding Husteel or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Husteel
Performance |
| Timeline |
| DB Insurance |
| Husteel |
DB Insurance and Husteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Husteel
The main advantage of trading using opposite DB Insurance and Husteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, Husteel 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 Husteel will offset losses from the drop in Husteel's long position.| DB Insurance vs. Ecoplastic | DB Insurance vs. INNOX Advanced Materials | DB Insurance vs. BGF Retail Co | DB Insurance vs. Union Materials Corp |
| Husteel vs. Eagon Industrial Co | Husteel vs. Daishin Information Communications | Husteel vs. Daesung Industrial Co | Husteel vs. Hyundai Industrial 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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