Correlation Between Dgb Financial and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Samsung Life 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 Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Samsung Life Insurance, you can compare the effects of market volatilities on Dgb Financial and Samsung Life 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 Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Samsung Life.
Diversification Opportunities for Dgb Financial and Samsung Life
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dgb and Samsung is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Samsung Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life 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 Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life Insurance has no effect on the direction of Dgb Financial i.e., Dgb Financial and Samsung Life go up and down completely randomly.
Pair Corralation between Dgb Financial and Samsung Life
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.23 times more return on investment than Samsung Life. However, Dgb Financial is 4.32 times less risky than Samsung Life. It trades about 0.25 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.04 per unit of risk. If you would invest 824,000 in Dgb Financial on August 28, 2024 and sell it today you would earn a total of 32,000 from holding Dgb Financial or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. Samsung Life Insurance
Performance |
| Timeline |
| Dgb Financial |
| Samsung Life Insurance |
Dgb Financial and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Samsung Life
The main advantage of trading using opposite Dgb Financial and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.| Dgb Financial vs. Korea New Network | Dgb Financial vs. Dong A Eltek | Dgb Financial vs. Dreamus Company | Dgb Financial vs. SK Bioscience Co |
| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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