Correlation Between Dgb Financial and Hyundai
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Hyundai 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 Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Hyundai Motor Co, you can compare the effects of market volatilities on Dgb Financial and Hyundai 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 Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Hyundai.
Diversification Opportunities for Dgb Financial and Hyundai
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dgb and Hyundai is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Dgb Financial i.e., Dgb Financial and Hyundai go up and down completely randomly.
Pair Corralation between Dgb Financial and Hyundai
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.52 times more return on investment than Hyundai. However, Dgb Financial is 1.92 times less risky than Hyundai. It trades about 0.97 of its potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.14 per unit of risk. If you would invest 821,000 in Dgb Financial on November 6, 2024 and sell it today you would earn a total of 101,000 from holding Dgb Financial or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. Hyundai Motor Co
Performance |
| Timeline |
| Dgb Financial |
| Hyundai Motor |
Dgb Financial and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Hyundai
The main advantage of trading using opposite Dgb Financial and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Dgb Financial vs. Mgame Corp | Dgb Financial vs. LG Household Healthcare | Dgb Financial vs. LG Household Healthcare | Dgb Financial vs. Insung Information Co |
| Hyundai vs. DB Financial Investment | Hyundai vs. Kakao Games Corp | Hyundai vs. Seoyon Topmetal Co | Hyundai vs. Settlebank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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