Correlation Between Dgb Financial and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and Incar 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 Incar 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 Incar Financial Service, you can compare the effects of market volatilities on Dgb Financial and Incar 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Incar Financial.
Diversification Opportunities for Dgb Financial and Incar Financial
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dgb and Incar is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Dgb Financial i.e., Dgb Financial and Incar Financial go up and down completely randomly.
Pair Corralation between Dgb Financial and Incar Financial
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.31 times more return on investment than Incar Financial. However, Dgb Financial is 3.23 times less risky than Incar Financial. It trades about 0.27 of its potential returns per unit of risk. Incar Financial Service is currently generating about 0.07 per unit of risk. If you would invest 922,000 in Dgb Financial on November 27, 2024 and sell it today you would earn a total of 41,000 from holding Dgb Financial or generate 4.45% 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. Incar Financial Service
Performance |
| Timeline |
| Dgb Financial |
| Incar Financial Service |
Dgb Financial and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Incar Financial
The main advantage of trading using opposite Dgb Financial and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, Incar 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Dgb Financial vs. Duksan Hi Metal | Dgb Financial vs. Hyunwoo Industrial Co | Dgb Financial vs. Hanjoo Light Metal | Dgb Financial vs. PJ Metal Co |
| Incar Financial vs. Hyundai Green Food | Incar Financial vs. Maeil Holdings Co | Incar Financial vs. Innowireless Co | Incar Financial vs. Hankook Furniture 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |