Correlation Between DB Insurance and Playgram
Can any of the company-specific risk be diversified away by investing in both DB Insurance and Playgram 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 Playgram 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 Playgram Co, you can compare the effects of market volatilities on DB Insurance and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Playgram.
Diversification Opportunities for DB Insurance and Playgram
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005830 and Playgram is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of DB Insurance i.e., DB Insurance and Playgram go up and down completely randomly.
Pair Corralation between DB Insurance and Playgram
Assuming the 90 days trading horizon DB Insurance Co is expected to under-perform the Playgram. In addition to that, DB Insurance is 1.0 times more volatile than Playgram Co. It trades about -0.12 of its total potential returns per unit of risk. Playgram Co is currently generating about -0.04 per unit of volatility. If you would invest 39,200 in Playgram Co on November 6, 2024 and sell it today you would lose (1,100) from holding Playgram Co or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Playgram Co
Performance |
| Timeline |
| DB Insurance |
| Playgram |
DB Insurance and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Playgram
The main advantage of trading using opposite DB Insurance and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram'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 |
| Playgram vs. RF Materials Co | Playgram vs. WooDeumGee Farm Co, | Playgram vs. Kolon Plastics | Playgram vs. Union Materials Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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