Correlation Between Kisan Telecom and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom 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 Kisan Telecom and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and DB Insurance Co, you can compare the effects of market volatilities on Kisan Telecom 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 Kisan Telecom with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and DB Insurance.
Diversification Opportunities for Kisan Telecom and DB Insurance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kisan and 005830 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Kisan Telecom 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 Kisan Telecom Co 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 Kisan Telecom i.e., Kisan Telecom and DB Insurance go up and down completely randomly.
Pair Corralation between Kisan Telecom and DB Insurance
Assuming the 90 days trading horizon Kisan Telecom Co is expected to under-perform the DB Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Kisan Telecom Co is 3.03 times less risky than DB Insurance. The stock trades about -0.16 of its potential returns per unit of risk. The DB Insurance Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 10,040,000 in DB Insurance Co on November 8, 2024 and sell it today you would earn a total of 0.00 from holding DB Insurance Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. DB Insurance Co
Performance |
| Timeline |
| Kisan Telecom |
| DB Insurance |
Kisan Telecom and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and DB Insurance
The main advantage of trading using opposite Kisan Telecom and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom 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.| Kisan Telecom vs. Samsung Electronics Co | Kisan Telecom vs. Samsung Electronics Co | Kisan Telecom vs. Hyundai Motor Co | Kisan Telecom vs. Hyundai Motor |
| DB Insurance vs. YG Entertainment | DB Insurance vs. MediaZen | DB Insurance vs. Daewon Media Co | DB Insurance vs. Husteel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |