Correlation Between Yujin Robot and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Yujin Robot 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 Yujin Robot and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yujin Robot Co and DB Insurance Co, you can compare the effects of market volatilities on Yujin Robot 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 Yujin Robot with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yujin Robot and DB Insurance.
Diversification Opportunities for Yujin Robot and DB Insurance
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yujin and 005830 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Yujin Robot 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 Yujin Robot 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 Yujin Robot 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 Yujin Robot i.e., Yujin Robot and DB Insurance go up and down completely randomly.
Pair Corralation between Yujin Robot and DB Insurance
Assuming the 90 days trading horizon Yujin Robot Co is expected to under-perform the DB Insurance. In addition to that, Yujin Robot is 1.1 times more volatile than DB Insurance Co. It trades about -0.07 of its total potential returns per unit of risk. DB Insurance Co is currently generating about 0.06 per unit of volatility. If you would invest 7,769,703 in DB Insurance Co on September 14, 2024 and sell it today you would earn a total of 2,940,297 from holding DB Insurance Co or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yujin Robot Co vs. DB Insurance Co
Performance |
| Timeline |
| Yujin Robot |
| DB Insurance |
Yujin Robot and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yujin Robot and DB Insurance
The main advantage of trading using opposite Yujin Robot and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yujin Robot 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.| Yujin Robot vs. Kbi Metal Co | Yujin Robot vs. Lotte Non Life Insurance | Yujin Robot vs. Shinsegae Information Communication | Yujin Robot vs. Shinhan Inverse Copper |
| DB Insurance vs. KB Financial Group | DB Insurance vs. Shinhan Financial Group | DB Insurance vs. Hana Financial | DB Insurance 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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