Correlation Between Dongbu Insurance and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on Dongbu Insurance and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and ASTORY CoLtd.
Diversification Opportunities for Dongbu Insurance and ASTORY CoLtd
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongbu and ASTORY is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between Dongbu Insurance and ASTORY CoLtd
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to under-perform the ASTORY CoLtd. In addition to that, Dongbu Insurance is 1.07 times more volatile than ASTORY CoLtd. It trades about -0.27 of its total potential returns per unit of risk. ASTORY CoLtd is currently generating about -0.15 per unit of volatility. If you would invest 782,000 in ASTORY CoLtd on October 28, 2024 and sell it today you would lose (51,000) from holding ASTORY CoLtd or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbu Insurance Co vs. ASTORY CoLtd
Performance |
| Timeline |
| Dongbu Insurance |
| ASTORY CoLtd |
Dongbu Insurance and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbu Insurance and ASTORY CoLtd
The main advantage of trading using opposite Dongbu Insurance and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.| Dongbu Insurance vs. KB Financial Group | Dongbu Insurance vs. Shinhan Financial Group | Dongbu Insurance vs. Hana Financial | Dongbu Insurance vs. Woori Financial Group |
| ASTORY CoLtd vs. Daishin Information Communications | ASTORY CoLtd vs. DRB Industrial Co | ASTORY CoLtd vs. Formetal Co | ASTORY CoLtd vs. Hanwha Life Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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