Correlation Between Dgb Financial and Kumho Petro
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Kumho Petro 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 Kumho Petro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Kumho Petro Chemical, you can compare the effects of market volatilities on Dgb Financial and Kumho Petro 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 Kumho Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Kumho Petro.
Diversification Opportunities for Dgb Financial and Kumho Petro
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dgb and Kumho is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Kumho Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Petro Chemical 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 Kumho Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Petro Chemical has no effect on the direction of Dgb Financial i.e., Dgb Financial and Kumho Petro go up and down completely randomly.
Pair Corralation between Dgb Financial and Kumho Petro
Assuming the 90 days trading horizon Dgb Financial is expected to generate 1.48 times less return on investment than Kumho Petro. But when comparing it to its historical volatility, Dgb Financial is 4.51 times less risky than Kumho Petro. It trades about 0.89 of its potential returns per unit of risk. Kumho Petro Chemical is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,900,000 in Kumho Petro Chemical on November 3, 2024 and sell it today you would earn a total of 1,650,000 from holding Kumho Petro Chemical or generate 18.54% 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. Kumho Petro Chemical
Performance |
| Timeline |
| Dgb Financial |
| Kumho Petro Chemical |
Dgb Financial and Kumho Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Kumho Petro
The main advantage of trading using opposite Dgb Financial and Kumho Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Kumho Petro 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 Kumho Petro will offset losses from the drop in Kumho Petro's long position.| Dgb Financial vs. Jinro Distillers Co | Dgb Financial vs. Vissem Electronics Co | Dgb Financial vs. Anam Electronics Co | Dgb Financial vs. ABCO Electronics Co |
| Kumho Petro vs. Dongwoon Anatech Co | Kumho Petro vs. SS TECH | Kumho Petro vs. Lion Chemtech Co | Kumho Petro vs. JYP Entertainment Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |