Correlation Between Dongbu Insurance and Korea Refract
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and Korea Refract 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 Dongbu Insurance and Korea Refract into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbu Insurance Co and Korea Refract, you can compare the effects of market volatilities on Dongbu Insurance and Korea Refract 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 Dongbu Insurance with a short position of Korea Refract. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and Korea Refract.
Diversification Opportunities for Dongbu Insurance and Korea Refract
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongbu and Korea is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and Korea Refract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Refract and Dongbu 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 Dongbu Insurance Co are associated (or correlated) with Korea Refract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Refract has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and Korea Refract go up and down completely randomly.
Pair Corralation between Dongbu Insurance and Korea Refract
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to generate 1.4 times more return on investment than Korea Refract. However, Dongbu Insurance is 1.4 times more volatile than Korea Refract. It trades about 0.0 of its potential returns per unit of risk. Korea Refract is currently generating about -0.14 per unit of risk. If you would invest 11,000,000 in Dongbu Insurance Co on September 2, 2024 and sell it today you would lose (80,000) from holding Dongbu Insurance Co or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbu Insurance Co vs. Korea Refract
Performance |
| Timeline |
| Dongbu Insurance |
| Korea Refract |
Dongbu Insurance and Korea Refract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbu Insurance and Korea Refract
The main advantage of trading using opposite Dongbu Insurance and Korea Refract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, Korea Refract 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 Refract will offset losses from the drop in Korea Refract's long position.| Dongbu Insurance vs. AptaBio Therapeutics | Dongbu Insurance vs. Daewoo SBI SPAC | Dongbu Insurance vs. Dream Security co | Dongbu Insurance vs. Microfriend |
| Korea Refract vs. Daechang Steel Co | Korea Refract vs. Korea Steel Co | Korea Refract vs. Dongbu Insurance Co | Korea Refract vs. Bookook Steel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |