Correlation Between Dongbu Insurance and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and Duksan 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 Dongbu Insurance and Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Dongbu Insurance and Duksan 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 Dongbu Insurance with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and Duksan Hi.
Diversification Opportunities for Dongbu Insurance and Duksan Hi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongbu and Duksan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and Duksan Hi go up and down completely randomly.
Pair Corralation between Dongbu Insurance and Duksan Hi
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to generate 0.72 times more return on investment than Duksan Hi. However, Dongbu Insurance Co is 1.4 times less risky than Duksan Hi. It trades about 0.07 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about 0.0 per unit of risk. If you would invest 5,530,845 in Dongbu Insurance Co on September 2, 2024 and sell it today you would earn a total of 5,389,155 from holding Dongbu Insurance Co or generate 97.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbu Insurance Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Dongbu Insurance |
| Duksan Hi Metal |
Dongbu Insurance and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbu Insurance and Duksan Hi
The main advantage of trading using opposite Dongbu Insurance and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, Duksan 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Dongbu Insurance vs. AptaBio Therapeutics | Dongbu Insurance vs. Daewoo SBI SPAC | Dongbu Insurance vs. Dream Security co | Dongbu Insurance vs. Microfriend |
| Duksan Hi vs. Digital Power Communications | Duksan Hi vs. Dongil Metal Co | Duksan Hi vs. BGF Retail Co | Duksan Hi vs. Echomarketing CoLtd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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