Correlation Between DB Financial and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both DB Financial and Yujin Robot 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 Yujin Robot 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 Yujin Robot Co, you can compare the effects of market volatilities on DB Financial and Yujin Robot 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 Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Yujin Robot.
Diversification Opportunities for DB Financial and Yujin Robot
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 016610 and Yujin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot 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 Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of DB Financial i.e., DB Financial and Yujin Robot go up and down completely randomly.
Pair Corralation between DB Financial and Yujin Robot
Assuming the 90 days trading horizon DB Financial Investment is expected to under-perform the Yujin Robot. But the stock apears to be less risky and, when comparing its historical volatility, DB Financial Investment is 1.92 times less risky than Yujin Robot. The stock trades about -0.07 of its potential returns per unit of risk. The Yujin Robot Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 596,000 in Yujin Robot Co on September 12, 2024 and sell it today you would earn a total of 2,000 from holding Yujin Robot Co or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
DB Financial Investment vs. Yujin Robot Co
Performance |
| Timeline |
| DB Financial Investment |
| Yujin Robot |
DB Financial and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Yujin Robot
The main advantage of trading using opposite DB Financial and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot'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 |
| Yujin Robot vs. Ssangyong Materials Corp | Yujin Robot vs. Iljin Materials Co | Yujin Robot vs. Dongwoo Farm To | Yujin Robot vs. SEOJEON ELECTRIC MACHINERY |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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