Correlation Between Kaonmedia and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Kaonmedia 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 Kaonmedia and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and DB Insurance Co, you can compare the effects of market volatilities on Kaonmedia 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 Kaonmedia with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and DB Insurance.
Diversification Opportunities for Kaonmedia and DB Insurance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kaonmedia and 005830 is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia 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 Kaonmedia 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 Kaonmedia 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 Kaonmedia i.e., Kaonmedia and DB Insurance go up and down completely randomly.
Pair Corralation between Kaonmedia and DB Insurance
Assuming the 90 days trading horizon Kaonmedia Co is expected to under-perform the DB Insurance. In addition to that, Kaonmedia is 1.55 times more volatile than DB Insurance Co. It trades about -0.03 of its total potential returns per unit of risk. DB Insurance Co is currently generating about 0.05 per unit of volatility. If you would invest 7,722,327 in DB Insurance Co on September 12, 2024 and sell it today you would earn a total of 2,727,673 from holding DB Insurance Co or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. DB Insurance Co
Performance |
| Timeline |
| Kaonmedia |
| DB Insurance |
Kaonmedia and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and DB Insurance
The main advantage of trading using opposite Kaonmedia and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia 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.| Kaonmedia vs. Shinsegae Food | Kaonmedia vs. BGF Retail Co | Kaonmedia vs. Mgame Corp | Kaonmedia vs. Netmarble Games Corp |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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