Correlation Between Jb Financial and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Jb Financial and DB Insurance 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 Jb Financial and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and DB Insurance Co, you can compare the effects of market volatilities on Jb Financial and DB Insurance 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 Jb Financial with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and DB Insurance.
Diversification Opportunities for Jb Financial and DB Insurance
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and 005830 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Jb 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 Jb Financial are associated (or correlated) with DB Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Insurance has no effect on the direction of Jb Financial i.e., Jb Financial and DB Insurance go up and down completely randomly.
Pair Corralation between Jb Financial and DB Insurance
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.78 times more return on investment than DB Insurance. However, Jb Financial is 1.28 times less risky than DB Insurance. It trades about 0.26 of its potential returns per unit of risk. DB Insurance Co is currently generating about -0.03 per unit of risk. If you would invest 1,798,000 in Jb Financial on August 31, 2024 and sell it today you would earn a total of 196,000 from holding Jb Financial or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. DB Insurance Co
Performance |
| Timeline |
| Jb Financial |
| DB Insurance |
Jb Financial and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and DB Insurance
The main advantage of trading using opposite Jb Financial and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, DB Insurance 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 DB Insurance will offset losses from the drop in DB Insurance's long position.| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group |
| DB Insurance vs. Koryo Credit Information | DB Insurance vs. Moadata Co | DB Insurance vs. SV Investment | DB Insurance vs. Golden Bridge Investment |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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