Correlation Between Kakaopay Corp and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Kakaopay Corp and Dongbu Insurance 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 Kakaopay Corp and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between kakaopay Corp and Dongbu Insurance Co, you can compare the effects of market volatilities on Kakaopay Corp and Dongbu Insurance 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 Kakaopay Corp with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kakaopay Corp and Dongbu Insurance.
Diversification Opportunities for Kakaopay Corp and Dongbu Insurance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kakaopay and Dongbu is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding kakaopay Corp and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and Kakaopay Corp 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 kakaopay Corp are associated (or correlated) with Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Kakaopay Corp i.e., Kakaopay Corp and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Kakaopay Corp and Dongbu Insurance
Assuming the 90 days trading horizon kakaopay Corp is expected to generate 0.96 times more return on investment than Dongbu Insurance. However, kakaopay Corp is 1.04 times less risky than Dongbu Insurance. It trades about -0.1 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about -0.31 per unit of risk. If you would invest 2,670,000 in kakaopay Corp on October 25, 2024 and sell it today you would lose (115,000) from holding kakaopay Corp or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
kakaopay Corp vs. Dongbu Insurance Co
Performance |
| Timeline |
| kakaopay Corp |
| Dongbu Insurance |
Kakaopay Corp and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kakaopay Corp and Dongbu Insurance
The main advantage of trading using opposite Kakaopay Corp and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kakaopay Corp position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Kakaopay Corp vs. Korea Refract | Kakaopay Corp vs. Korea Refractories Co | Kakaopay Corp vs. Shinhan Inverse WTI | Kakaopay Corp vs. SAMYOUNG M Tek Co |
| Dongbu Insurance vs. Korea Steel Co | Dongbu Insurance vs. Eugene Technology CoLtd | Dongbu Insurance vs. Seers Technology | Dongbu Insurance vs. Genie Music |
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.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |