Correlation Between DBS Group and DBS Group
Can any of the company-specific risk be diversified away by investing in both DBS Group and DBS Group 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 DBS Group and DBS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBS Group Holdings and DBS Group Holdings, you can compare the effects of market volatilities on DBS Group and DBS Group 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 DBS Group with a short position of DBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBS Group and DBS Group.
Diversification Opportunities for DBS Group and DBS Group
Poor diversification
The 3 months correlation between DBS and DBS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DBS Group Holdings and DBS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBS Group Holdings and DBS Group 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 DBS Group Holdings are associated (or correlated) with DBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBS Group Holdings has no effect on the direction of DBS Group i.e., DBS Group and DBS Group go up and down completely randomly.
Pair Corralation between DBS Group and DBS Group
Assuming the 90 days horizon DBS Group is expected to generate 1.5 times less return on investment than DBS Group. But when comparing it to its historical volatility, DBS Group Holdings is 2.6 times less risky than DBS Group. It trades about 0.08 of its potential returns per unit of risk. DBS Group Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,024 in DBS Group Holdings on November 2, 2024 and sell it today you would earn a total of 1,251 from holding DBS Group Holdings or generate 61.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBS Group Holdings vs. DBS Group Holdings
Performance |
| Timeline |
| DBS Group Holdings |
| DBS Group Holdings |
DBS Group and DBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBS Group and DBS Group
The main advantage of trading using opposite DBS Group and DBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBS Group position performs unexpectedly, DBS Group 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 DBS Group will offset losses from the drop in DBS Group's long position.| DBS Group vs. KBC Groep NV | DBS Group vs. United Overseas Bank | DBS Group vs. Embassy Bancorp | DBS Group vs. Overseas Chinese Banking |
| DBS Group vs. United Overseas Bank | DBS Group vs. KBC Groep NV | DBS Group vs. Overseas Chinese Banking | DBS Group vs. China Minsh |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |