Correlation Between Dgb Financial and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Dgb Financial 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 Dgb Financial and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and DB Insurance Co, you can compare the effects of market volatilities on Dgb Financial 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 Dgb Financial with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and DB Insurance.
Diversification Opportunities for Dgb Financial and DB Insurance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dgb and 005830 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance 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 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 Dgb Financial i.e., Dgb Financial and DB Insurance go up and down completely randomly.
Pair Corralation between Dgb Financial and DB Insurance
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.35 times more return on investment than DB Insurance. However, Dgb Financial is 2.87 times less risky than DB Insurance. It trades about 0.45 of its potential returns per unit of risk. DB Insurance Co is currently generating about 0.01 per unit of risk. If you would invest 817,000 in Dgb Financial on September 1, 2024 and sell it today you would earn a total of 70,000 from holding Dgb Financial or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. DB Insurance Co
Performance |
| Timeline |
| Dgb Financial |
| DB Insurance |
Dgb Financial and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and DB Insurance
The main advantage of trading using opposite Dgb Financial and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial 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.| Dgb Financial vs. Dongbu Insurance Co | Dgb Financial vs. Kyung In Synthetic Corp | Dgb Financial vs. Pureun Mutual Savings | Dgb Financial vs. GS Retail Co |
| DB Insurance vs. Samsung Electronics Co | DB Insurance vs. Samsung Electronics Co | DB Insurance vs. KB Financial Group | DB Insurance vs. Shinhan Financial Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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