Correlation Between DB Financial and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both DB Financial and Shinhan Inverse 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 Shinhan Inverse 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 Shinhan Inverse Silver, you can compare the effects of market volatilities on DB Financial and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Shinhan Inverse.
Diversification Opportunities for DB Financial and Shinhan Inverse
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 016610 and Shinhan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Shinhan Inverse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Silver 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse Silver has no effect on the direction of DB Financial i.e., DB Financial and Shinhan Inverse go up and down completely randomly.
Pair Corralation between DB Financial and Shinhan Inverse
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 1.16 times more return on investment than Shinhan Inverse. However, DB Financial is 1.16 times more volatile than Shinhan Inverse Silver. It trades about 0.24 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.12 per unit of risk. If you would invest 493,500 in DB Financial Investment on September 14, 2024 and sell it today you would earn a total of 53,500 from holding DB Financial Investment or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Financial Investment vs. Shinhan Inverse Silver
Performance |
| Timeline |
| DB Financial Investment |
| Shinhan Inverse Silver |
DB Financial and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Shinhan Inverse
The main advantage of trading using opposite DB Financial and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse'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 |
| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Polaris Office Corp | Shinhan Inverse vs. Sempio Foods Co | Shinhan Inverse vs. Korea Alcohol Industrial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |