Correlation Between DB Insurance and CG Hi
Can any of the company-specific risk be diversified away by investing in both DB Insurance and CG Hi 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 CG Hi 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 CG Hi Tech, you can compare the effects of market volatilities on DB Insurance and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and CG Hi.
Diversification Opportunities for DB Insurance and CG Hi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 005830 and 264660 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance Co and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of DB Insurance i.e., DB Insurance and CG Hi go up and down completely randomly.
Pair Corralation between DB Insurance and CG Hi
Assuming the 90 days trading horizon DB Insurance Co is expected to generate 0.97 times more return on investment than CG Hi. However, DB Insurance Co is 1.03 times less risky than CG Hi. It trades about 0.05 of its potential returns per unit of risk. CG Hi Tech is currently generating about -0.02 per unit of risk. If you would invest 8,432,970 in DB Insurance Co on September 4, 2024 and sell it today you would earn a total of 2,497,030 from holding DB Insurance Co or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. CG Hi Tech
Performance |
| Timeline |
| DB Insurance |
| CG Hi Tech |
DB Insurance and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and CG Hi
The main advantage of trading using opposite DB Insurance and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| DB Insurance vs. Echomarketing CoLtd | DB Insurance vs. HB Technology TD | DB Insurance vs. Seoul Semiconductor Co | DB Insurance vs. Hwangkum Steel Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |