Correlation Between Seoul Electronics and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Seoul Electronics and DB Insurance 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 Seoul Electronics and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Electronics Telecom and DB Insurance Co, you can compare the effects of market volatilities on Seoul Electronics and DB Insurance 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 Seoul Electronics with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Electronics and DB Insurance.
Diversification Opportunities for Seoul Electronics and DB Insurance
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Seoul and 005830 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Electronics Telecom and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Seoul Electronics 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 Seoul Electronics Telecom are associated (or correlated) with DB Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Insurance has no effect on the direction of Seoul Electronics i.e., Seoul Electronics and DB Insurance go up and down completely randomly.
Pair Corralation between Seoul Electronics and DB Insurance
Assuming the 90 days trading horizon Seoul Electronics Telecom is expected to under-perform the DB Insurance. In addition to that, Seoul Electronics is 1.27 times more volatile than DB Insurance Co. It trades about -0.06 of its total potential returns per unit of risk. DB Insurance Co is currently generating about 0.01 per unit of volatility. If you would invest 9,371,020 in DB Insurance Co on November 1, 2024 and sell it today you would lose (211,020) from holding DB Insurance Co or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Electronics Telecom vs. DB Insurance Co
Performance |
| Timeline |
| Seoul Electronics Telecom |
| DB Insurance |
Seoul Electronics and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Electronics and DB Insurance
The main advantage of trading using opposite Seoul Electronics and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Electronics position performs unexpectedly, DB Insurance 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 DB Insurance will offset losses from the drop in DB Insurance's long position.| Seoul Electronics vs. Coloray International Investment | Seoul Electronics vs. Daejung Chemicals Metals | Seoul Electronics vs. DB Financial Investment | Seoul Electronics vs. Sangsangin Investment Securities |
| DB Insurance vs. iNtRON Biotechnology | DB Insurance vs. Kisan Telecom Co | DB Insurance vs. Digital Power Communications | DB Insurance vs. Playgram 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 CEOs Directory module to screen CEOs from public companies around the world.
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