Correlation Between FinecoBank Banca and DBS Group
Can any of the company-specific risk be diversified away by investing in both FinecoBank Banca 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 FinecoBank Banca and DBS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinecoBank Banca Fineco and DBS Group Holdings, you can compare the effects of market volatilities on FinecoBank Banca 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 FinecoBank Banca with a short position of DBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinecoBank Banca and DBS Group.
Diversification Opportunities for FinecoBank Banca and DBS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FinecoBank and DBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FinecoBank Banca Fineco 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 FinecoBank Banca 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 FinecoBank Banca Fineco 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 FinecoBank Banca i.e., FinecoBank Banca and DBS Group go up and down completely randomly.
Pair Corralation between FinecoBank Banca and DBS Group
Assuming the 90 days horizon FinecoBank Banca Fineco is expected to generate 3.37 times more return on investment than DBS Group. However, FinecoBank Banca is 3.37 times more volatile than DBS Group Holdings. It trades about 0.04 of its potential returns per unit of risk. DBS Group Holdings is currently generating about 0.09 per unit of risk. If you would invest 1,195 in FinecoBank Banca Fineco on August 30, 2024 and sell it today you would earn a total of 253.00 from holding FinecoBank Banca Fineco or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 58.59% |
| Values | Daily Returns |
FinecoBank Banca Fineco vs. DBS Group Holdings
Performance |
| Timeline |
| FinecoBank Banca Fineco |
| DBS Group Holdings |
FinecoBank Banca and DBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinecoBank Banca and DBS Group
The main advantage of trading using opposite FinecoBank Banca and DBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinecoBank Banca 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.The idea behind FinecoBank Banca Fineco and DBS Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DBS Group vs. Invesco High Income | DBS Group vs. Blackrock Muniholdings Ny | DBS Group vs. Nuveen California Select | DBS Group vs. MFS Investment Grade |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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