Correlation Between Dgb Financial and Sang A
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Sang A 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 Sang A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Sang A Frontec CoLtd, you can compare the effects of market volatilities on Dgb Financial and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Sang A.
Diversification Opportunities for Dgb Financial and Sang A
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dgb and Sang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Dgb Financial i.e., Dgb Financial and Sang A go up and down completely randomly.
Pair Corralation between Dgb Financial and Sang A
If you would invest (100.00) in Sang A Frontec CoLtd on January 9, 2025 and sell it today you would earn a total of 100.00 from holding Sang A Frontec CoLtd or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dgb Financial vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| Dgb Financial |
| Sang A Frontec |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Dgb Financial and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Sang A
The main advantage of trading using opposite Dgb Financial and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Dgb Financial vs. Woori Financial Group | Dgb Financial vs. Samyang Foods Co | Dgb Financial vs. Jb Financial | Dgb Financial vs. Seoul Food Industrial |
| Sang A vs. BGF Retail Co | Sang A vs. Echomarketing CoLtd | Sang A vs. Hyundai BNG Steel | Sang A vs. Kukil Metal 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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