Correlation Between DB Financial and Haesung DS
Can any of the company-specific risk be diversified away by investing in both DB Financial and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on DB Financial and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Haesung DS.
Diversification Opportunities for DB Financial and Haesung DS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 016610 and Haesung is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of DB Financial i.e., DB Financial and Haesung DS go up and down completely randomly.
Pair Corralation between DB Financial and Haesung DS
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 0.54 times more return on investment than Haesung DS. However, DB Financial Investment is 1.86 times less risky than Haesung DS. It trades about 0.01 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.16 per unit of risk. If you would invest 529,000 in DB Financial Investment on September 13, 2024 and sell it today you would lose (1,000.00) from holding DB Financial Investment or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Financial Investment vs. Haesung DS Co
Performance |
| Timeline |
| DB Financial Investment |
| Haesung DS |
DB Financial and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Haesung DS
The main advantage of trading using opposite DB Financial and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS'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 |
| Haesung DS vs. DB Financial Investment | Haesung DS vs. KTB Investment Securities | Haesung DS vs. TS Investment Corp | Haesung DS vs. Samyung Trading 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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