Correlation Between Jb Financial and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Dgb 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 Jb Financial and Dgb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Dgb Financial, you can compare the effects of market volatilities on Jb Financial and Dgb 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 Jb Financial with a short position of Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Dgb Financial.
Diversification Opportunities for Jb Financial and Dgb Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 175330 and Dgb is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial 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 Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of Jb Financial i.e., Jb Financial and Dgb Financial go up and down completely randomly.
Pair Corralation between Jb Financial and Dgb Financial
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.61 times more return on investment than Dgb Financial. However, Jb Financial is 1.61 times more volatile than Dgb Financial. It trades about 0.14 of its potential returns per unit of risk. Dgb Financial is currently generating about 0.04 per unit of risk. If you would invest 1,307,409 in Jb Financial on September 3, 2024 and sell it today you would earn a total of 660,591 from holding Jb Financial or generate 50.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Dgb Financial
Performance |
| Timeline |
| Jb Financial |
| Dgb Financial |
Jb Financial and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Dgb Financial
The main advantage of trading using opposite Jb Financial and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Dgb 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 Dgb Financial will offset losses from the drop in Dgb Financial's long position.| Jb Financial vs. Tway Air Co | Jb Financial vs. Youl Chon Chemical | Jb Financial vs. Jin Air Co | Jb Financial vs. Netmarble Games Corp |
| Dgb Financial vs. Taegu Broadcasting | Dgb Financial vs. LG Display Co | Dgb Financial vs. Dongbang Transport Logistics | Dgb Financial vs. Display Tech 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |