Correlation Between INtRON Biotechnology and DB Insurance
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology 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 INtRON Biotechnology and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and DB Insurance Co, you can compare the effects of market volatilities on INtRON Biotechnology 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 INtRON Biotechnology with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and DB Insurance.
Diversification Opportunities for INtRON Biotechnology and DB Insurance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between INtRON and 005830 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and INtRON Biotechnology 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 iNtRON Biotechnology 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 INtRON Biotechnology i.e., INtRON Biotechnology and DB Insurance go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and DB Insurance
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the DB Insurance. But the stock apears to be less risky and, when comparing its historical volatility, iNtRON Biotechnology is 1.52 times less risky than DB Insurance. The stock trades about -0.07 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. DB Insurance Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| DB Insurance |
INtRON Biotechnology and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and DB Insurance
The main advantage of trading using opposite INtRON Biotechnology and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology 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.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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