Correlation Between Ssangyong Information and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Dgb Financial 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 Dgb Financial 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 Dgb Financial, you can compare the effects of market volatilities on Ssangyong Information and Dgb Financial 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 Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Dgb Financial.
Diversification Opportunities for Ssangyong Information and Dgb Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Dgb is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial 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 Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Dgb Financial go up and down completely randomly.
Pair Corralation between Ssangyong Information and Dgb Financial
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Dgb Financial. In addition to that, Ssangyong Information is 1.26 times more volatile than Dgb Financial. It trades about -0.02 of its total potential returns per unit of risk. Dgb Financial is currently generating about 0.03 per unit of volatility. If you would invest 731,640 in Dgb Financial on October 11, 2024 and sell it today you would earn a total of 100,360 from holding Dgb Financial or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Dgb Financial
Performance |
| Timeline |
| Ssangyong Information |
| Dgb Financial |
Ssangyong Information and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Dgb Financial
The main advantage of trading using opposite Ssangyong Information and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Dgb Financial 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 Dgb Financial will offset losses from the drop in Dgb Financial's long position.| Ssangyong Information vs. CKH Food Health | Ssangyong Information vs. Korean Drug Co | Ssangyong Information vs. Green Cross Medical | Ssangyong Information vs. Kyung Chang Industrial |
| Dgb Financial vs. Automobile Pc | Dgb Financial vs. Ssangyong Information Communication | Dgb Financial vs. Han Kook Steel | Dgb Financial vs. INSUN Environmental New |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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