Correlation Between PanGen Biotech and DB Financial
Can any of the company-specific risk be diversified away by investing in both PanGen Biotech 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 PanGen Biotech and DB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PanGen Biotech and DB Financial Investment, you can compare the effects of market volatilities on PanGen Biotech 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 PanGen Biotech with a short position of DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PanGen Biotech and DB Financial.
Diversification Opportunities for PanGen Biotech and DB Financial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PanGen and 016610 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PanGen Biotech 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 PanGen Biotech 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 PanGen Biotech 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 PanGen Biotech i.e., PanGen Biotech and DB Financial go up and down completely randomly.
Pair Corralation between PanGen Biotech and DB Financial
Assuming the 90 days trading horizon PanGen Biotech is expected to generate 34.11 times less return on investment than DB Financial. In addition to that, PanGen Biotech is 1.63 times more volatile than DB Financial Investment. It trades about 0.0 of its total potential returns per unit of risk. DB Financial Investment is currently generating about 0.09 per unit of volatility. If you would invest 410,000 in DB Financial Investment on September 12, 2024 and sell it today you would earn a total of 118,000 from holding DB Financial Investment or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PanGen Biotech vs. DB Financial Investment
Performance |
| Timeline |
| PanGen Biotech |
| DB Financial Investment |
PanGen Biotech and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PanGen Biotech and DB Financial
The main advantage of trading using opposite PanGen Biotech and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PanGen Biotech 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.| PanGen Biotech vs. DB Financial Investment | PanGen Biotech vs. Hana Financial | PanGen Biotech vs. DB Insurance Co | PanGen Biotech vs. Jeju Bank |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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