Correlation Between Ssangyong Information and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information 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 Ssangyong Information and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and DB Insurance Co, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and DB Insurance.
Diversification Opportunities for Ssangyong Information and DB Insurance
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and 005830 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Ssangyong Information 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 Ssangyong Information Communication 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 Ssangyong Information i.e., Ssangyong Information and DB Insurance go up and down completely randomly.
Pair Corralation between Ssangyong Information and DB Insurance
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.56 times more return on investment than DB Insurance. However, Ssangyong Information Communication is 1.77 times less risky than DB Insurance. It trades about -0.01 of its potential returns per unit of risk. DB Insurance Co is currently generating about -0.02 per unit of risk. If you would invest 66,100 in Ssangyong Information Communication on October 18, 2024 and sell it today you would lose (1,800) from holding Ssangyong Information Communication or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
Ssangyong Information Communic vs. DB Insurance Co
Performance |
| Timeline |
| Ssangyong Information |
| DB Insurance |
Ssangyong Information and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and DB Insurance
The main advantage of trading using opposite Ssangyong Information and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.| Ssangyong Information vs. Samlip General Foods | Ssangyong Information vs. Korean Air Lines | Ssangyong Information vs. Jeju Air Co | Ssangyong Information vs. Samyang Foods Co |
| DB Insurance vs. Ssangyong Information Communication | DB Insurance vs. Hanjin Transportation Co | DB Insurance vs. FNSTech Co | DB Insurance vs. Nice Information Telecommunication |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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