Correlation Between Dgb Financial and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Sangsangin Investment 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 Dgb Financial and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Sangsangin Investment Securities, you can compare the effects of market volatilities on Dgb Financial and Sangsangin Investment 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 Dgb Financial with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Sangsangin Investment.
Diversification Opportunities for Dgb Financial and Sangsangin Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dgb and Sangsangin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and Dgb Financial 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 Dgb Financial are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Dgb Financial i.e., Dgb Financial and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Dgb Financial and Sangsangin Investment
Assuming the 90 days trading horizon Dgb Financial is expected to under-perform the Sangsangin Investment. In addition to that, Dgb Financial is 1.61 times more volatile than Sangsangin Investment Securities. It trades about -0.05 of its total potential returns per unit of risk. Sangsangin Investment Securities is currently generating about 0.13 per unit of volatility. If you would invest 42,600 in Sangsangin Investment Securities on October 16, 2024 and sell it today you would earn a total of 1,000.00 from holding Sangsangin Investment Securities or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Dgb Financial |
| Sangsangin Investment |
Dgb Financial and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Sangsangin Investment
The main advantage of trading using opposite Dgb Financial and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| Dgb Financial vs. Inzi Display CoLtd | Dgb Financial vs. Ssangyong Information Communication | Dgb Financial vs. Songwon Industrial Co | Dgb Financial vs. Shinil Industrial Co |
| Sangsangin Investment vs. SBI Investment KOREA | Sangsangin Investment vs. Dgb Financial | Sangsangin Investment vs. Korea Investment Holdings | Sangsangin Investment vs. Atinum Investment Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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