Correlation Between Youl Chon and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Youl Chon and DB Insurance 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 Youl Chon and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youl Chon Chemical and DB Insurance Co, you can compare the effects of market volatilities on Youl Chon and DB Insurance 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 Youl Chon with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youl Chon and DB Insurance.
Diversification Opportunities for Youl Chon and DB Insurance
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youl and 005830 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Youl Chon Chemical and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Youl Chon 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 Youl Chon Chemical are associated (or correlated) with DB Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Insurance has no effect on the direction of Youl Chon i.e., Youl Chon and DB Insurance go up and down completely randomly.
Pair Corralation between Youl Chon and DB Insurance
Assuming the 90 days trading horizon Youl Chon Chemical is expected to under-perform the DB Insurance. In addition to that, Youl Chon is 1.42 times more volatile than DB Insurance Co. It trades about -0.02 of its total potential returns per unit of risk. DB Insurance Co is currently generating about 0.07 per unit of volatility. If you would invest 7,722,327 in DB Insurance Co on August 25, 2024 and sell it today you would earn a total of 3,127,673 from holding DB Insurance Co or generate 40.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youl Chon Chemical vs. DB Insurance Co
Performance |
| Timeline |
| Youl Chon Chemical |
| DB Insurance |
Youl Chon and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youl Chon and DB Insurance
The main advantage of trading using opposite Youl Chon and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youl Chon position performs unexpectedly, DB Insurance 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 DB Insurance will offset losses from the drop in DB Insurance's long position.| Youl Chon vs. AptaBio Therapeutics | Youl Chon vs. Daewoo SBI SPAC | Youl Chon vs. Dream Security co | Youl Chon vs. Microfriend |
| DB Insurance vs. LG Household Healthcare | DB Insurance vs. Aprogen Healthcare Games | DB Insurance vs. Youl Chon Chemical | DB Insurance vs. Hannong Chemicals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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