Correlation Between DBS Group and CNVISION MEDIA

Can any of the company-specific risk be diversified away by investing in both DBS Group and CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA, you can compare the effects of market volatilities on DBS Group and CNVISION MEDIA 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 CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBS Group and CNVISION MEDIA.

Diversification Opportunities for DBS Group and CNVISION MEDIA

0.19

Correlation Coefficient

DBS Group  CNVISION MEDIA

Average diversification

The 3 months correlation between DBS and CNVISION is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding DBS Group Holdings and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA 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 CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of DBS Group i.e., DBS Group and CNVISION MEDIA go up and down completely randomly.

Pair Corralation between DBS Group and CNVISION MEDIA

If you would invest  5.60  in CNVISION MEDIA on October 11, 2024 and sell it today you would lose (0.05) from holding CNVISION MEDIA or give up 0.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DBS Group Holdings  vs.  CNVISION MEDIA

DBS Group Holdings

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days DBS Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, DBS Group reported solid returns over the last few months and may actually be approaching a breakup point.

CNVISION MEDIA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CNVISION MEDIA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CNVISION MEDIA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with DBS Group and CNVISION MEDIA

The main advantage of trading using opposite DBS Group and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBS Group position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.

The idea behind DBS Group Holdings and CNVISION MEDIA 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.