Correlation Between Daishin Balance and KB No4
Can any of the company-specific risk be diversified away by investing in both Daishin Balance and KB No4 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 Daishin Balance and KB No4 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Balance No8 and KB No4 SPAC, you can compare the effects of market volatilities on Daishin Balance and KB No4 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 Daishin Balance with a short position of KB No4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and KB No4.
Diversification Opportunities for Daishin Balance and KB No4
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daishin and 205500 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and KB No4 SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB No4 SPAC and Daishin Balance 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 Daishin Balance No8 are associated (or correlated) with KB No4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB No4 SPAC has no effect on the direction of Daishin Balance i.e., Daishin Balance and KB No4 go up and down completely randomly.
Pair Corralation between Daishin Balance and KB No4
Assuming the 90 days trading horizon Daishin Balance is expected to generate 1.01 times less return on investment than KB No4. But when comparing it to its historical volatility, Daishin Balance No8 is 1.05 times less risky than KB No4. It trades about 0.03 of its potential returns per unit of risk. KB No4 SPAC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 290,500 in KB No4 SPAC on December 4, 2024 and sell it today you would earn a total of 46,000 from holding KB No4 SPAC or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Daishin Balance No8 vs. KB No4 SPAC
Performance |
| Timeline |
| Daishin Balance No8 |
| KB No4 SPAC |
Daishin Balance and KB No4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and KB No4
The main advantage of trading using opposite Daishin Balance and KB No4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance position performs unexpectedly, KB No4 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 KB No4 will offset losses from the drop in KB No4's long position.| Daishin Balance vs. DB Insurance Co | Daishin Balance vs. Green Cross Medical | Daishin Balance vs. Automobile Pc | Daishin Balance vs. Korea Investment Holdings |
| KB No4 vs. Jeong Moon Information | KB No4 vs. NICE Information Service | KB No4 vs. Vitzro Tech Co | KB No4 vs. Korea Information Engineering |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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