Correlation Between Dgb Financial and ENERGYMACHINERY KOREA
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and ENERGYMACHINERY KOREA CoLtd, you can compare the effects of market volatilities on Dgb Financial and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and ENERGYMACHINERY KOREA.
Diversification Opportunities for Dgb Financial and ENERGYMACHINERY KOREA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dgb and ENERGYMACHINERY is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and ENERGYMACHINERY KOREA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGYMACHINERY KOREA has no effect on the direction of Dgb Financial i.e., Dgb Financial and ENERGYMACHINERY KOREA go up and down completely randomly.
Pair Corralation between Dgb Financial and ENERGYMACHINERY KOREA
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.49 times more return on investment than ENERGYMACHINERY KOREA. However, Dgb Financial is 2.05 times less risky than ENERGYMACHINERY KOREA. It trades about 0.11 of its potential returns per unit of risk. ENERGYMACHINERY KOREA CoLtd is currently generating about -0.01 per unit of risk. If you would invest 787,000 in Dgb Financial on November 7, 2024 and sell it today you would earn a total of 131,000 from holding Dgb Financial or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. ENERGYMACHINERY KOREA CoLtd
Performance |
| Timeline |
| Dgb Financial |
| ENERGYMACHINERY KOREA |
Dgb Financial and ENERGYMACHINERY KOREA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and ENERGYMACHINERY KOREA
The main advantage of trading using opposite Dgb Financial and ENERGYMACHINERY KOREA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA will offset losses from the drop in ENERGYMACHINERY KOREA's long position.| Dgb Financial vs. Mgame Corp | Dgb Financial vs. LG Household Healthcare | Dgb Financial vs. LG Household Healthcare | Dgb Financial vs. Insung Information Co |
| ENERGYMACHINERY KOREA vs. Korea Shipbuilding Offshore | ENERGYMACHINERY KOREA vs. RF Materials Co | ENERGYMACHINERY KOREA vs. PI Advanced Materials | ENERGYMACHINERY KOREA vs. Daiyang 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |