Correlation Between Taegu Broadcasting and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and Dgb Financial 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 Taegu Broadcasting and Dgb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and Dgb Financial, you can compare the effects of market volatilities on Taegu Broadcasting and Dgb Financial 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 Taegu Broadcasting with a short position of Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and Dgb Financial.
Diversification Opportunities for Taegu Broadcasting and Dgb Financial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taegu and Dgb is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial and Taegu Broadcasting 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 Taegu Broadcasting are associated (or correlated) with Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and Dgb Financial go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and Dgb Financial
Assuming the 90 days trading horizon Taegu Broadcasting is expected to generate 2.49 times less return on investment than Dgb Financial. In addition to that, Taegu Broadcasting is 1.72 times more volatile than Dgb Financial. It trades about 0.02 of its total potential returns per unit of risk. Dgb Financial is currently generating about 0.1 per unit of volatility. If you would invest 850,523 in Dgb Financial on December 1, 2024 and sell it today you would earn a total of 75,477 from holding Dgb Financial or generate 8.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Taegu Broadcasting vs. Dgb Financial
Performance |
Timeline |
Taegu Broadcasting |
Dgb Financial |
Taegu Broadcasting and Dgb Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Taegu Broadcasting and Dgb Financial
The main advantage of trading using opposite Taegu Broadcasting and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, Dgb Financial 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 Dgb Financial will offset losses from the drop in Dgb Financial's long position.Taegu Broadcasting vs. Display Tech Co | Taegu Broadcasting vs. Hwangkum Steel Technology | Taegu Broadcasting vs. Nable Communications | Taegu Broadcasting vs. Inzi Display CoLtd |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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