Correlation Between DB Financial and Amogreentech
Can any of the company-specific risk be diversified away by investing in both DB Financial and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on DB Financial and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Amogreentech.
Diversification Opportunities for DB Financial and Amogreentech
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 016610 and Amogreentech is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of DB Financial i.e., DB Financial and Amogreentech go up and down completely randomly.
Pair Corralation between DB Financial and Amogreentech
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 0.51 times more return on investment than Amogreentech. However, DB Financial Investment is 1.94 times less risky than Amogreentech. It trades about 0.05 of its potential returns per unit of risk. Amogreentech Co is currently generating about -0.05 per unit of risk. If you would invest 383,374 in DB Financial Investment on October 29, 2024 and sell it today you would earn a total of 155,626 from holding DB Financial Investment or generate 40.59% 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. Amogreentech Co
Performance |
| Timeline |
| DB Financial Investment |
| Amogreentech |
DB Financial and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Amogreentech
The main advantage of trading using opposite DB Financial and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| DB Financial vs. Atinum Investment Co | DB Financial vs. Woori Technology Investment | DB Financial vs. Coloray International Investment | DB Financial vs. LB Investment |
| Amogreentech vs. Ecopro BM Co | Amogreentech vs. Sangsin Energy Display | Amogreentech vs. Bosung Power Technology | Amogreentech vs. Busan Industrial Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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