Correlation Between DB Financial and SPG
Can any of the company-specific risk be diversified away by investing in both DB Financial and SPG 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 SPG 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 SPG Co, you can compare the effects of market volatilities on DB Financial and SPG 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 SPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and SPG.
Diversification Opportunities for DB Financial and SPG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 016610 and SPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and SPG Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPG Co 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 SPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPG Co has no effect on the direction of DB Financial i.e., DB Financial and SPG go up and down completely randomly.
Pair Corralation between DB Financial and SPG
If you would invest 546,000 in DB Financial Investment on November 28, 2024 and sell it today you would earn a total of 63,000 from holding DB Financial Investment or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
DB Financial Investment vs. SPG Co
Performance |
| Timeline |
| DB Financial Investment |
| SPG Co |
Risk-Adjusted Performance
OK
Weak | Strong |
DB Financial and SPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and SPG
The main advantage of trading using opposite DB Financial and SPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, SPG 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 SPG will offset losses from the drop in SPG's long position.| DB Financial vs. SV Investment | DB Financial vs. Dongbang Transport Logistics | DB Financial vs. Handok Clean Tech | DB Financial vs. Nh Investment And |
| SPG vs. Dongkuk Structures Construction | SPG vs. Hyundai Engineering Construction | SPG vs. Koryo Credit Information | SPG vs. Jeong Moon Information |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |