Correlation Between DB Financial and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both DB Financial and Dgb 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 DB Financial and Dgb Financial 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 Dgb Financial, you can compare the effects of market volatilities on DB Financial and Dgb 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 DB Financial with a short position of Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Dgb Financial.
Diversification Opportunities for DB Financial and Dgb Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 016610 and Dgb is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial 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 Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of DB Financial i.e., DB Financial and Dgb Financial go up and down completely randomly.
Pair Corralation between DB Financial and Dgb Financial
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 1.39 times more return on investment than Dgb Financial. However, DB Financial is 1.39 times more volatile than Dgb Financial. It trades about 0.07 of its potential returns per unit of risk. Dgb Financial is currently generating about 0.04 per unit of risk. If you would invest 370,961 in DB Financial Investment on September 4, 2024 and sell it today you would earn a total of 152,039 from holding DB Financial Investment or generate 40.99% 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. Dgb Financial
Performance |
| Timeline |
| DB Financial Investment |
| Dgb Financial |
DB Financial and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Dgb Financial
The main advantage of trading using opposite DB Financial and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Dgb 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 Dgb Financial will offset losses from the drop in Dgb Financial's long position.| DB Financial vs. LG Household Healthcare | DB Financial vs. Samwha Electronics Co | DB Financial vs. Sunny Electronics Corp | DB Financial vs. Cuckoo Electronics Co |
| Dgb Financial vs. Dongjin Semichem Co | Dgb Financial vs. AhnLab Inc | Dgb Financial vs. Posco ICT | Dgb Financial vs. CJ ENM |
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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