Correlation Between DB Financial and GAMEVIL
Can any of the company-specific risk be diversified away by investing in both DB Financial and GAMEVIL 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 GAMEVIL 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 GAMEVIL, you can compare the effects of market volatilities on DB Financial and GAMEVIL 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 GAMEVIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and GAMEVIL.
Diversification Opportunities for DB Financial and GAMEVIL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 016610 and GAMEVIL is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and GAMEVIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMEVIL 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 GAMEVIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMEVIL has no effect on the direction of DB Financial i.e., DB Financial and GAMEVIL go up and down completely randomly.
Pair Corralation between DB Financial and GAMEVIL
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 0.43 times more return on investment than GAMEVIL. However, DB Financial Investment is 2.35 times less risky than GAMEVIL. It trades about 0.32 of its potential returns per unit of risk. GAMEVIL is currently generating about -0.1 per unit of risk. If you would invest 404,000 in DB Financial Investment on February 14, 2024 and sell it today you would earn a total of 21,000 from holding DB Financial Investment or generate 5.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DB Financial Investment vs. GAMEVIL
Performance |
Timeline |
DB Financial Investment |
GAMEVIL |
DB Financial and GAMEVIL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DB Financial and GAMEVIL
The main advantage of trading using opposite DB Financial and GAMEVIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, GAMEVIL 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 GAMEVIL will offset losses from the drop in GAMEVIL's long position.The idea behind DB Financial Investment and GAMEVIL 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.GAMEVIL vs. Samsung Electronics Co | GAMEVIL vs. Samsung Electronics Co | GAMEVIL vs. Hyundai Motor Co | GAMEVIL vs. Hyundai Motor |
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.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Stocks Directory Find actively traded stocks across global markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |