Correlation Between Dgb Financial and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Jeju Semiconductor 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 Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Jeju Semiconductor Corp, you can compare the effects of market volatilities on Dgb Financial and Jeju Semiconductor 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 Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Jeju Semiconductor.
Diversification Opportunities for Dgb Financial and Jeju Semiconductor
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dgb and Jeju is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp 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 Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Dgb Financial i.e., Dgb Financial and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Dgb Financial and Jeju Semiconductor
Assuming the 90 days trading horizon Dgb Financial is expected to under-perform the Jeju Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Dgb Financial is 1.81 times less risky than Jeju Semiconductor. The stock trades about -0.1 of its potential returns per unit of risk. The Jeju Semiconductor Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 911,000 in Jeju Semiconductor Corp on September 28, 2024 and sell it today you would lose (25,000) from holding Jeju Semiconductor Corp or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| Dgb Financial |
| Jeju Semiconductor Corp |
Dgb Financial and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Jeju Semiconductor
The main advantage of trading using opposite Dgb Financial and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Dgb Financial vs. KB Financial Group | Dgb Financial vs. Hyundai Motor | Dgb Financial vs. Hyundai Motor Co | Dgb Financial vs. Hyundai Motor Co |
| Jeju Semiconductor vs. Jb Financial | Jeju Semiconductor vs. Incar Financial Service | Jeju Semiconductor vs. PLAYWITH | Jeju Semiconductor vs. Dgb Financial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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