Correlation Between Haesung DS and DB Financial
Can any of the company-specific risk be diversified away by investing in both Haesung DS and DB 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 Haesung DS and DB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung DS Co and DB Financial Investment, you can compare the effects of market volatilities on Haesung DS and DB 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 Haesung DS with a short position of DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung DS and DB Financial.
Diversification Opportunities for Haesung DS and DB Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haesung and 016610 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Haesung DS Co and DB Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Financial Investment and Haesung DS 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 Haesung DS Co are associated (or correlated) with DB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Financial Investment has no effect on the direction of Haesung DS i.e., Haesung DS and DB Financial go up and down completely randomly.
Pair Corralation between Haesung DS and DB Financial
Assuming the 90 days trading horizon Haesung DS Co is expected to under-perform the DB Financial. In addition to that, Haesung DS is 1.77 times more volatile than DB Financial Investment. It trades about -0.02 of its total potential returns per unit of risk. DB Financial Investment is currently generating about 0.04 per unit of volatility. If you would invest 416,493 in DB Financial Investment on September 13, 2024 and sell it today you would earn a total of 111,507 from holding DB Financial Investment or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung DS Co vs. DB Financial Investment
Performance |
| Timeline |
| Haesung DS |
| DB Financial Investment |
Haesung DS and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung DS and DB Financial
The main advantage of trading using opposite Haesung DS and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung DS position performs unexpectedly, DB 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 DB Financial will offset losses from the drop in DB Financial's long position.| Haesung DS vs. DB Financial Investment | Haesung DS vs. KTB Investment Securities | Haesung DS vs. TS Investment Corp | Haesung DS vs. Samyung Trading Co |
| DB Financial vs. KB Financial Group | DB Financial vs. Shinhan Financial Group | DB Financial vs. Hana Financial | DB Financial vs. Woori Financial Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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