Correlation Between DB Insurance and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both DB Insurance and Shinsung Delta 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 Shinsung Delta 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 Shinsung Delta Tech, you can compare the effects of market volatilities on DB Insurance and Shinsung Delta 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 Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Shinsung Delta.
Diversification Opportunities for DB Insurance and Shinsung Delta
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005830 and Shinsung is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta Tech 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 Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of DB Insurance i.e., DB Insurance and Shinsung Delta go up and down completely randomly.
Pair Corralation between DB Insurance and Shinsung Delta
Assuming the 90 days trading horizon DB Insurance Co is expected to generate 0.57 times more return on investment than Shinsung Delta. However, DB Insurance Co is 1.75 times less risky than Shinsung Delta. It trades about 0.03 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about 0.01 per unit of risk. If you would invest 10,470,000 in DB Insurance Co on September 2, 2024 and sell it today you would earn a total of 450,000 from holding DB Insurance Co or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Shinsung Delta Tech
Performance |
| Timeline |
| DB Insurance |
| Shinsung Delta Tech |
DB Insurance and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Shinsung Delta
The main advantage of trading using opposite DB Insurance and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| DB Insurance vs. Samsung Electronics Co | DB Insurance vs. Samsung Electronics Co | DB Insurance vs. KB Financial Group | DB Insurance vs. Shinhan Financial Group |
| Shinsung Delta vs. Korea New Network | Shinsung Delta vs. ICD Co | Shinsung Delta vs. DYPNF CoLtd | Shinsung Delta vs. Busan 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |