Correlation Between DB Financial and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both DB Financial and Seoyon Topmetal 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 DB Financial and Seoyon Topmetal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB Financial Investment and Seoyon Topmetal Co, you can compare the effects of market volatilities on DB Financial and Seoyon Topmetal 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 DB Financial with a short position of Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Seoyon Topmetal.
Diversification Opportunities for DB Financial and Seoyon Topmetal
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 016610 and Seoyon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal and DB Financial 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 DB Financial Investment are associated (or correlated) with Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of DB Financial i.e., DB Financial and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between DB Financial and Seoyon Topmetal
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 0.59 times more return on investment than Seoyon Topmetal. However, DB Financial Investment is 1.69 times less risky than Seoyon Topmetal. It trades about 0.24 of its potential returns per unit of risk. Seoyon Topmetal Co is currently generating about -0.1 per unit of risk. If you would invest 493,500 in DB Financial Investment on September 14, 2024 and sell it today you would earn a total of 53,500 from holding DB Financial Investment or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Financial Investment vs. Seoyon Topmetal Co
Performance |
| Timeline |
| DB Financial Investment |
| Seoyon Topmetal |
DB Financial and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Seoyon Topmetal
The main advantage of trading using opposite DB Financial and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| DB Financial vs. KB Financial Group | DB Financial vs. Shinhan Financial Group | DB Financial vs. Hana Financial | DB Financial vs. Woori Financial Group |
| Seoyon Topmetal vs. Daou Data Corp | Seoyon Topmetal vs. Solution Advanced Technology | Seoyon Topmetal vs. Busan Industrial Co | Seoyon Topmetal vs. Busan Ind |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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