Correlation Between E Investment and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both E Investment 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 E Investment and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Dongbu Insurance Co, you can compare the effects of market volatilities on E Investment 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 E Investment with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Dongbu Insurance.
Diversification Opportunities for E Investment and Dongbu Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Dongbu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and E Investment 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 E Investment Development 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 E Investment i.e., E Investment and Dongbu Insurance go up and down completely randomly.
Pair Corralation between E Investment and Dongbu Insurance
If you would invest 10,930,000 in Dongbu Insurance Co on September 1, 2024 and sell it today you would lose (10,000) from holding Dongbu Insurance Co or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. Dongbu Insurance Co
Performance |
| Timeline |
| E Investment Development |
| Dongbu Insurance |
E Investment and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Dongbu Insurance
The main advantage of trading using opposite E Investment and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment 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.| E Investment vs. Dongsin Engineering Construction | E Investment vs. Doosan Fuel Cell | E Investment vs. Daishin Balance 1 | E Investment vs. Total Soft Bank |
| Dongbu Insurance vs. Dongbang Transport Logistics | Dongbu Insurance vs. Dongwon Metal Co | Dongbu Insurance vs. Homecast CoLtd | Dongbu Insurance vs. Youngsin Metal Industrial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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