Correlation Between DB Insurance and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both DB Insurance and Korea Shipbuilding 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 Korea Shipbuilding 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 Korea Shipbuilding Offshore, you can compare the effects of market volatilities on DB Insurance and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Korea Shipbuilding.
Diversification Opportunities for DB Insurance and Korea Shipbuilding
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 005830 and Korea is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of DB Insurance i.e., DB Insurance and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between DB Insurance and Korea Shipbuilding
Assuming the 90 days trading horizon DB Insurance Co is expected to under-perform the Korea Shipbuilding. In addition to that, DB Insurance is 1.02 times more volatile than Korea Shipbuilding Offshore. It trades about -0.08 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.12 per unit of volatility. If you would invest 19,600,000 in Korea Shipbuilding Offshore on October 24, 2024 and sell it today you would earn a total of 5,250,000 from holding Korea Shipbuilding Offshore or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| DB Insurance |
| Korea Shipbuilding |
DB Insurance and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Korea Shipbuilding
The main advantage of trading using opposite DB Insurance and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| DB Insurance vs. Next Entertainment World | DB Insurance vs. MetaLabs Co | DB Insurance vs. Dongil Metal Co | DB Insurance vs. ChipsMedia |
| Korea Shipbuilding vs. Dongil Metal Co | Korea Shipbuilding vs. Heungkuk Metaltech CoLtd | Korea Shipbuilding vs. Wireless Power Amplifier | Korea Shipbuilding vs. Mobileleader CoLtd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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