Correlation Between Dgb Financial and APS Holdings
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and APS Holdings 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 APS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and APS Holdings, you can compare the effects of market volatilities on Dgb Financial and APS Holdings 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 APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and APS Holdings.
Diversification Opportunities for Dgb Financial and APS Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dgb and APS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings 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 APS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Holdings has no effect on the direction of Dgb Financial i.e., Dgb Financial and APS Holdings go up and down completely randomly.
Pair Corralation between Dgb Financial and APS Holdings
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.56 times more return on investment than APS Holdings. However, Dgb Financial is 1.8 times less risky than APS Holdings. It trades about 0.46 of its potential returns per unit of risk. APS Holdings is currently generating about -0.34 per unit of risk. If you would invest 818,000 in Dgb Financial on September 3, 2024 and sell it today you would earn a total of 69,000 from holding Dgb Financial or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. APS Holdings
Performance |
| Timeline |
| Dgb Financial |
| APS Holdings |
Dgb Financial and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and APS Holdings
The main advantage of trading using opposite Dgb Financial and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, APS Holdings 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 APS Holdings will offset losses from the drop in APS Holdings' long position.| Dgb Financial vs. Taegu Broadcasting | Dgb Financial vs. LG Display Co | Dgb Financial vs. Dongbang Transport Logistics | Dgb Financial vs. Display Tech Co |
| APS Holdings vs. Cots Technology Co | APS Holdings vs. CU Tech Corp | APS Holdings vs. LG Chemicals | APS Holdings vs. PH Tech Co |
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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