Correlation Between DB Financial and IQuest Co
Can any of the company-specific risk be diversified away by investing in both DB Financial and IQuest Co 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 DB Financial and IQuest Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB Financial Investment and IQuest Co, you can compare the effects of market volatilities on DB Financial and IQuest Co 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 DB Financial with a short position of IQuest Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and IQuest Co.
Diversification Opportunities for DB Financial and IQuest Co
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 016610 and IQuest is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and IQuest Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQuest Co and DB Financial 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 DB Financial Investment are associated (or correlated) with IQuest Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQuest Co has no effect on the direction of DB Financial i.e., DB Financial and IQuest Co go up and down completely randomly.
Pair Corralation between DB Financial and IQuest Co
Assuming the 90 days trading horizon DB Financial Investment is expected to under-perform the IQuest Co. But the stock apears to be less risky and, when comparing its historical volatility, DB Financial Investment is 1.43 times less risky than IQuest Co. The stock trades about -0.07 of its potential returns per unit of risk. The IQuest Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 208,000 in IQuest Co on September 12, 2024 and sell it today you would earn a total of 31,000 from holding IQuest Co or generate 14.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
DB Financial Investment vs. IQuest Co
Performance |
Timeline |
DB Financial Investment |
IQuest Co |
DB Financial and IQuest Co Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DB Financial and IQuest Co
The main advantage of trading using opposite DB Financial and IQuest Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, IQuest Co 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 IQuest Co will offset losses from the drop in IQuest Co's long position.DB Financial vs. KB Financial Group | DB Financial vs. Shinhan Financial Group | DB Financial vs. Hana Financial | DB Financial vs. Woori Financial Group |
IQuest Co vs. Cots Technology Co | IQuest Co vs. Jeju Beer Co | IQuest Co vs. THiRA UTECH LTD | IQuest Co vs. Vitzro Tech Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |