Correlation Between TS Investment and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both TS Investment 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 TS Investment and Dgb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TS Investment Corp and Dgb Financial, you can compare the effects of market volatilities on TS Investment 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 TS Investment with a short position of Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Dgb Financial.
Diversification Opportunities for TS Investment and Dgb Financial
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 246690 and Dgb is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial and TS Investment 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 TS Investment Corp 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 TS Investment i.e., TS Investment and Dgb Financial go up and down completely randomly.
Pair Corralation between TS Investment and Dgb Financial
Assuming the 90 days trading horizon TS Investment is expected to generate 1.83 times less return on investment than Dgb Financial. In addition to that, TS Investment is 3.1 times more volatile than Dgb Financial. It trades about 0.14 of its total potential returns per unit of risk. Dgb Financial is currently generating about 0.79 per unit of volatility. If you would invest 818,000 in Dgb Financial on October 29, 2024 and sell it today you would earn a total of 94,000 from holding Dgb Financial or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Dgb Financial
Performance |
| Timeline |
| TS Investment Corp |
| Dgb Financial |
TS Investment and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Dgb Financial
The main advantage of trading using opposite TS Investment and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment 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.| TS Investment vs. Daeduck Electronics Co | TS Investment vs. PJ Electronics Co | TS Investment vs. DAEDUCK ELECTRONICS CoLtd | TS Investment vs. BNK Financial Group |
| Dgb Financial vs. SK Chemicals Co | Dgb Financial vs. Hanwha Life Insurance | Dgb Financial vs. Miwon Chemicals Co | Dgb Financial vs. Nable Communications |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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