Correlation Between Dongil Metal and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Dongil Metal 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 Dongil Metal and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and DB Insurance Co, you can compare the effects of market volatilities on Dongil Metal 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 Dongil Metal with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and DB Insurance.
Diversification Opportunities for Dongil Metal and DB Insurance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and 005830 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal 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 Dongil Metal 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 Dongil Metal 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 Dongil Metal i.e., Dongil Metal and DB Insurance go up and down completely randomly.
Pair Corralation between Dongil Metal and DB Insurance
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.97 times more return on investment than DB Insurance. However, Dongil Metal Co is 1.03 times less risky than DB Insurance. It trades about 0.48 of its potential returns per unit of risk. DB Insurance Co is currently generating about -0.25 per unit of risk. If you would invest 751,598 in Dongil Metal Co on October 24, 2024 and sell it today you would earn a total of 163,402 from holding Dongil Metal Co or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. DB Insurance Co
Performance |
| Timeline |
| Dongil Metal |
| DB Insurance |
Dongil Metal and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and DB Insurance
The main advantage of trading using opposite Dongil Metal and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal 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.| Dongil Metal vs. Alton Sports CoLtd | Dongil Metal vs. PlayD Co | Dongil Metal vs. YG Entertainment | Dongil Metal vs. T3 Entertainment Co |
| DB Insurance vs. Next Entertainment World | DB Insurance vs. MetaLabs Co | DB Insurance vs. Dongil Metal Co | DB Insurance vs. ChipsMedia |
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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