Correlation Between Dongbu Insurance and Seah Steel
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and Seah Steel 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 Seah Steel 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 Seah Steel Corp, you can compare the effects of market volatilities on Dongbu Insurance and Seah Steel 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 Seah Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and Seah Steel.
Diversification Opportunities for Dongbu Insurance and Seah Steel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dongbu and Seah is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and Seah Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seah Steel Corp 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 Seah Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seah Steel Corp has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and Seah Steel go up and down completely randomly.
Pair Corralation between Dongbu Insurance and Seah Steel
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to generate 1.26 times more return on investment than Seah Steel. However, Dongbu Insurance is 1.26 times more volatile than Seah Steel Corp. It trades about 0.04 of its potential returns per unit of risk. Seah Steel Corp is currently generating about 0.01 per unit of risk. If you would invest 7,201,188 in Dongbu Insurance Co on November 22, 2024 and sell it today you would earn a total of 2,888,812 from holding Dongbu Insurance Co or generate 40.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dongbu Insurance Co vs. Seah Steel Corp
Performance |
Timeline |
Dongbu Insurance |
Seah Steel Corp |
Dongbu Insurance and Seah Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongbu Insurance and Seah Steel
The main advantage of trading using opposite Dongbu Insurance and Seah Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, Seah Steel 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 Seah Steel will offset losses from the drop in Seah Steel's long position.Dongbu Insurance vs. Global Standard Technology | ||
Dongbu Insurance vs. ADTechnology CoLtd | ||
Dongbu Insurance vs. E Investment Development | ||
Dongbu Insurance vs. Cots Technology Co |
Seah Steel vs. Kyeryong Construction Industrial | ||
Seah Steel vs. ENERGYMACHINERY KOREA CoLtd | ||
Seah Steel vs. GS Engineering Construction | ||
Seah Steel vs. Korea Steel Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |