Correlation Between Jayjun and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Jayjun 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 Jayjun and Dgb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayjun Co and Dgb Financial, you can compare the effects of market volatilities on Jayjun 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 Jayjun with a short position of Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayjun and Dgb Financial.
Diversification Opportunities for Jayjun and Dgb Financial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jayjun and Dgb is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jayjun Co and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial and Jayjun 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 Jayjun Co 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 Jayjun i.e., Jayjun and Dgb Financial go up and down completely randomly.
Pair Corralation between Jayjun and Dgb Financial
Assuming the 90 days trading horizon Jayjun Co is expected to under-perform the Dgb Financial. In addition to that, Jayjun is 2.74 times more volatile than Dgb Financial. It trades about 0.0 of its total potential returns per unit of risk. Dgb Financial is currently generating about 0.04 per unit of volatility. If you would invest 677,252 in Dgb Financial on September 12, 2024 and sell it today you would earn a total of 186,748 from holding Dgb Financial or generate 27.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jayjun Co vs. Dgb Financial
Performance |
| Timeline |
| Jayjun |
| Dgb Financial |
Jayjun and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayjun and Dgb Financial
The main advantage of trading using opposite Jayjun and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayjun 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.| Jayjun vs. Dgb Financial | Jayjun vs. CJ Seafood Corp | Jayjun vs. Koryo Credit Information | Jayjun vs. Pureun Mutual Savings |
| Dgb Financial vs. KB Financial Group | Dgb Financial vs. Shinhan Financial Group | Dgb Financial vs. Hana Financial | Dgb Financial vs. Woori 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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