Correlation Between Dgb Financial and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Hana Financial 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 Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Hana Financial, you can compare the effects of market volatilities on Dgb Financial and Hana Financial 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 Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Hana Financial.
Diversification Opportunities for Dgb Financial and Hana Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dgb and Hana is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial 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 Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of Dgb Financial i.e., Dgb Financial and Hana Financial go up and down completely randomly.
Pair Corralation between Dgb Financial and Hana Financial
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.45 times more return on investment than Hana Financial. However, Dgb Financial is 2.21 times less risky than Hana Financial. It trades about 0.28 of its potential returns per unit of risk. Hana Financial is currently generating about 0.07 per unit of risk. If you would invest 807,000 in Dgb Financial on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Dgb Financial or generate 9.91% 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. Hana Financial
Performance |
| Timeline |
| Dgb Financial |
| Hana Financial |
Dgb Financial and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Hana Financial
The main advantage of trading using opposite Dgb Financial and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Hana Financial 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 Hana Financial will offset losses from the drop in Hana Financial's 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 |
| Hana Financial vs. Eagon Industrial Co | Hana Financial vs. Daishin Information Communications | Hana Financial vs. Haesung Industrial Co | Hana Financial vs. Namhwa Industrial 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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