Correlation Between DB Insurance and COWAY
Can any of the company-specific risk be diversified away by investing in both DB Insurance and COWAY 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 COWAY 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 COWAY Co, you can compare the effects of market volatilities on DB Insurance and COWAY 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 COWAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and COWAY.
Diversification Opportunities for DB Insurance and COWAY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 005830 and COWAY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and COWAY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWAY 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 COWAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWAY has no effect on the direction of DB Insurance i.e., DB Insurance and COWAY go up and down completely randomly.
Pair Corralation between DB Insurance and COWAY
Assuming the 90 days trading horizon DB Insurance Co is expected to generate 1.19 times more return on investment than COWAY. However, DB Insurance is 1.19 times more volatile than COWAY Co. It trades about 0.06 of its potential returns per unit of risk. COWAY Co is currently generating about 0.03 per unit of risk. If you would invest 5,999,112 in DB Insurance Co on September 12, 2024 and sell it today you would earn a total of 4,450,888 from holding DB Insurance Co or generate 74.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. COWAY Co
Performance |
| Timeline |
| DB Insurance |
| COWAY |
DB Insurance and COWAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and COWAY
The main advantage of trading using opposite DB Insurance and COWAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, COWAY 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 COWAY will offset losses from the drop in COWAY's long position.| DB Insurance vs. KB Financial Group | DB Insurance vs. Shinhan Financial Group | DB Insurance vs. Hana Financial | DB Insurance vs. Woori Financial Group |
| COWAY vs. Daou Data Corp | COWAY vs. Solution Advanced Technology | COWAY vs. Busan Industrial Co | COWAY vs. Busan Ind |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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