Correlation Between DB Financial and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both DB Financial and SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment Co, you can compare the effects of market volatilities on DB Financial and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and SAMG Entertainment.
Diversification Opportunities for DB Financial and SAMG Entertainment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 016610 and SAMG is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of DB Financial i.e., DB Financial and SAMG Entertainment go up and down completely randomly.
Pair Corralation between DB Financial and SAMG Entertainment
Assuming the 90 days trading horizon DB Financial Investment is expected to under-perform the SAMG Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, DB Financial Investment is 2.7 times less risky than SAMG Entertainment. The stock trades about -0.02 of its potential returns per unit of risk. The SAMG Entertainment Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,295,000 in SAMG Entertainment Co on November 3, 2024 and sell it today you would earn a total of 229,000 from holding SAMG Entertainment Co or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Financial Investment vs. SAMG Entertainment Co
Performance |
| Timeline |
| DB Financial Investment |
| SAMG Entertainment |
DB Financial and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and SAMG Entertainment
The main advantage of trading using opposite DB Financial and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| DB Financial vs. Samyang Foods Co | DB Financial vs. Alton Sports CoLtd | DB Financial vs. INSUN Environmental New | DB Financial vs. Heungkuk Metaltech CoLtd |
| SAMG Entertainment vs. Woori Financial Group | SAMG Entertainment vs. Miwon Chemicals Co | SAMG Entertainment vs. KakaoBank Corp | SAMG Entertainment vs. BNK Financial Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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