Correlation Between Dgb Financial and System
Can any of the company-specific risk be diversified away by investing in both Dgb Financial and System 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 Dgb Financial and System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and System and Application, you can compare the effects of market volatilities on Dgb Financial and System 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 Dgb Financial with a short position of System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and System.
Diversification Opportunities for Dgb Financial and System
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dgb and System is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and System and Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System and Application and Dgb 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 Dgb Financial are associated (or correlated) with System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System and Application has no effect on the direction of Dgb Financial i.e., Dgb Financial and System go up and down completely randomly.
Pair Corralation between Dgb Financial and System
Assuming the 90 days trading horizon Dgb Financial is expected to under-perform the System. But the stock apears to be less risky and, when comparing its historical volatility, Dgb Financial is 2.82 times less risky than System. The stock trades about -0.12 of its potential returns per unit of risk. The System and Application is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 140,439 in System and Application on October 11, 2024 and sell it today you would earn a total of 15,661 from holding System and Application or generate 11.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dgb Financial vs. System and Application
Performance |
Timeline |
Dgb Financial |
System and Application |
Dgb Financial and System Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dgb Financial and System
The main advantage of trading using opposite Dgb Financial and System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial position performs unexpectedly, System 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 System will offset losses from the drop in System's long position.Dgb Financial vs. RFTech Co | Dgb Financial vs. LG Household Healthcare | Dgb Financial vs. Daiyang Metal Co | Dgb Financial vs. Daejung Chemicals Metals |
System vs. Dgb Financial | System vs. Seoam Machinery Industry | System vs. Seohee Construction Co | System vs. BNK Financial Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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