Correlation Between Dongbu Insurance and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Dongbu Insurance and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and Hankukpackage.
Diversification Opportunities for Dongbu Insurance and Hankukpackage
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongbu and Hankukpackage is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and Hankukpackage go up and down completely randomly.
Pair Corralation between Dongbu Insurance and Hankukpackage
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to under-perform the Hankukpackage. In addition to that, Dongbu Insurance is 2.88 times more volatile than Hankukpackage Co. It trades about -0.06 of its total potential returns per unit of risk. Hankukpackage Co is currently generating about -0.02 per unit of volatility. If you would invest 170,000 in Hankukpackage Co on November 28, 2024 and sell it today you would lose (400.00) from holding Hankukpackage Co or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbu Insurance Co vs. Hankukpackage Co
Performance |
| Timeline |
| Dongbu Insurance |
| Hankukpackage |
Dongbu Insurance and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbu Insurance and Hankukpackage
The main advantage of trading using opposite Dongbu Insurance and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Dongbu Insurance vs. Korea Shipbuilding Offshore | Dongbu Insurance vs. InfoBank | Dongbu Insurance vs. Kyeryong Construction Industrial | Dongbu Insurance vs. Korea Industrial Co |
| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Sigong Tech Co | Hankukpackage vs. Namyang Dairy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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