Correlation Between Dgb Financial and FOODWELL
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and FOODWELL 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 FOODWELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and FOODWELL Co, you can compare the effects of market volatilities on Dgb Financial and FOODWELL 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 FOODWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and FOODWELL.
Diversification Opportunities for Dgb Financial and FOODWELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dgb and FOODWELL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and FOODWELL Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOODWELL 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 FOODWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOODWELL has no effect on the direction of Dgb Financial i.e., Dgb Financial and FOODWELL go up and down completely randomly.
Pair Corralation between Dgb Financial and FOODWELL
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.58 times more return on investment than FOODWELL. However, Dgb Financial is 1.71 times less risky than FOODWELL. It trades about 0.53 of its potential returns per unit of risk. FOODWELL Co is currently generating about 0.14 per unit of risk. If you would invest 832,000 in Dgb Financial on October 28, 2024 and sell it today you would earn a total of 80,000 from holding Dgb Financial or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. FOODWELL Co
Performance |
| Timeline |
| Dgb Financial |
| FOODWELL |
Dgb Financial and FOODWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and FOODWELL
The main advantage of trading using opposite Dgb Financial and FOODWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, FOODWELL 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 FOODWELL will offset losses from the drop in FOODWELL's long position.| Dgb Financial vs. SBI Investment KOREA | Dgb Financial vs. Nable Communications | Dgb Financial vs. Automobile Pc | Dgb Financial vs. TS Investment Corp |
| FOODWELL vs. Busan Industrial Co | FOODWELL vs. Busan Ind | FOODWELL vs. RPBio Inc | FOODWELL vs. Finebesteel |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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