Correlation Between SH Energy and Iljin Display
Can any of the company-specific risk be diversified away by investing in both SH Energy and Iljin Display 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 SH Energy and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SH Energy Chemical and Iljin Display, you can compare the effects of market volatilities on SH Energy and Iljin Display 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 SH Energy with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of SH Energy and Iljin Display.
Diversification Opportunities for SH Energy and Iljin Display
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 002360 and Iljin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SH Energy Chemical and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and SH Energy 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 SH Energy Chemical are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of SH Energy i.e., SH Energy and Iljin Display go up and down completely randomly.
Pair Corralation between SH Energy and Iljin Display
Assuming the 90 days trading horizon SH Energy Chemical is expected to under-perform the Iljin Display. In addition to that, SH Energy is 1.51 times more volatile than Iljin Display. It trades about 0.0 of its total potential returns per unit of risk. Iljin Display is currently generating about 0.05 per unit of volatility. If you would invest 85,900 in Iljin Display on October 30, 2024 and sell it today you would earn a total of 2,600 from holding Iljin Display or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SH Energy Chemical vs. Iljin Display
Performance |
| Timeline |
| SH Energy Chemical |
| Iljin Display |
SH Energy and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SH Energy and Iljin Display
The main advantage of trading using opposite SH Energy and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SH Energy position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| SH Energy vs. BooKook Steel Co | SH Energy vs. Nature and Environment | SH Energy vs. MetaLabs Co | SH Energy vs. DONGKUK TED METAL |
| Iljin Display vs. Daishin Information Communications | Iljin Display vs. Mobileleader CoLtd | Iljin Display vs. Jeong Moon Information | Iljin Display vs. Mgame Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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