Correlation Between DB Insurance and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both DB Insurance and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on DB Insurance and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Samsung Electronics.
Diversification Opportunities for DB Insurance and Samsung Electronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 005830 and Samsung is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of DB Insurance i.e., DB Insurance and Samsung Electronics go up and down completely randomly.
Pair Corralation between DB Insurance and Samsung Electronics
Assuming the 90 days trading horizon DB Insurance Co is expected to generate 1.51 times more return on investment than Samsung Electronics. However, DB Insurance is 1.51 times more volatile than Samsung Electronics Co. It trades about 0.07 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 5,575,021 in DB Insurance Co on September 3, 2024 and sell it today you would earn a total of 5,344,979 from holding DB Insurance Co or generate 95.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Samsung Electronics Co
Performance |
| Timeline |
| DB Insurance |
| Samsung Electronics |
DB Insurance and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Samsung Electronics
The main advantage of trading using opposite DB Insurance and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| DB Insurance vs. Playgram Co | DB Insurance vs. National Plastic Co | DB Insurance vs. Grand Korea Leisure | DB Insurance vs. EV Advanced Material |
| Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. UNISEM Co | Samsung Electronics vs. RPBio Inc | Samsung Electronics vs. Finebesteel |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |