Correlation Between Daesung Private and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Daesung Private and Dongbu 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 Daesung Private and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Private Equity and Dongbu Insurance Co, you can compare the effects of market volatilities on Daesung Private and Dongbu 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 Daesung Private with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Private and Dongbu Insurance.
Diversification Opportunities for Daesung Private and Dongbu Insurance
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daesung and Dongbu is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Private Equity and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and Daesung Private 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 Daesung Private Equity are associated (or correlated) with Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Daesung Private i.e., Daesung Private and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Daesung Private and Dongbu Insurance
Assuming the 90 days trading horizon Daesung Private Equity is expected to generate 1.12 times more return on investment than Dongbu Insurance. However, Daesung Private is 1.12 times more volatile than Dongbu Insurance Co. It trades about 0.1 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about -0.25 per unit of risk. If you would invest 186,600 in Daesung Private Equity on October 24, 2024 and sell it today you would earn a total of 7,900 from holding Daesung Private Equity or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Private Equity vs. Dongbu Insurance Co
Performance |
| Timeline |
| Daesung Private Equity |
| Dongbu Insurance |
Daesung Private and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Private and Dongbu Insurance
The main advantage of trading using opposite Daesung Private and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Private position performs unexpectedly, Dongbu 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Daesung Private vs. Dongbu Insurance Co | Daesung Private vs. Jeju Beer Co | Daesung Private vs. Daou Technology | Daesung Private vs. NewFlex Technology Co |
| Dongbu Insurance vs. Hanjoo Light Metal | Dongbu Insurance vs. Heungkuk Metaltech CoLtd | Dongbu Insurance vs. Duksan Hi Metal | Dongbu Insurance vs. MetaLabs 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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