Correlation Between Nuintek CoLtd and DB Financial
Can any of the company-specific risk be diversified away by investing in both Nuintek CoLtd and DB 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 Nuintek CoLtd and DB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuintek CoLtd and DB Financial Investment, you can compare the effects of market volatilities on Nuintek CoLtd and DB 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 Nuintek CoLtd with a short position of DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuintek CoLtd and DB Financial.
Diversification Opportunities for Nuintek CoLtd and DB Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuintek and 016610 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nuintek CoLtd and DB Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Financial Investment and Nuintek CoLtd 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 Nuintek CoLtd are associated (or correlated) with DB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Financial Investment has no effect on the direction of Nuintek CoLtd i.e., Nuintek CoLtd and DB Financial go up and down completely randomly.
Pair Corralation between Nuintek CoLtd and DB Financial
Assuming the 90 days trading horizon Nuintek CoLtd is expected to under-perform the DB Financial. But the stock apears to be less risky and, when comparing its historical volatility, Nuintek CoLtd is 1.57 times less risky than DB Financial. The stock trades about -0.2 of its potential returns per unit of risk. The DB Financial Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 410,000 in DB Financial Investment on September 12, 2024 and sell it today you would earn a total of 110,000 from holding DB Financial Investment or generate 26.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuintek CoLtd vs. DB Financial Investment
Performance |
| Timeline |
| Nuintek CoLtd |
| DB Financial Investment |
Nuintek CoLtd and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuintek CoLtd and DB Financial
The main advantage of trading using opposite Nuintek CoLtd and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuintek CoLtd position performs unexpectedly, DB 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 DB Financial will offset losses from the drop in DB Financial's long position.| Nuintek CoLtd vs. Cube Entertainment | Nuintek CoLtd vs. Dreamus Company | Nuintek CoLtd vs. LG Energy Solution | Nuintek CoLtd vs. Dongwon System |
| DB Financial vs. KB Financial Group | DB Financial vs. Shinhan Financial Group | DB Financial vs. Hana Financial | DB Financial vs. Woori Financial Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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