Correlation Between Shinil Electronics and GS Retail
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and GS Retail 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 Shinil Electronics and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Electronics Co and GS Retail Co, you can compare the effects of market volatilities on Shinil Electronics and GS Retail 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 Shinil Electronics with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and GS Retail.
Diversification Opportunities for Shinil Electronics and GS Retail
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinil and 007070 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail and Shinil Electronics 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 Shinil Electronics Co are associated (or correlated) with GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and GS Retail go up and down completely randomly.
Pair Corralation between Shinil Electronics and GS Retail
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.67 times more return on investment than GS Retail. However, Shinil Electronics Co is 1.5 times less risky than GS Retail. It trades about -0.06 of its potential returns per unit of risk. GS Retail Co is currently generating about -0.06 per unit of risk. If you would invest 203,855 in Shinil Electronics Co on October 29, 2024 and sell it today you would lose (63,155) from holding Shinil Electronics Co or give up 30.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.14% |
| Values | Daily Returns |
Shinil Electronics Co vs. GS Retail Co
Performance |
| Timeline |
| Shinil Electronics |
| GS Retail |
Shinil Electronics and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and GS Retail
The main advantage of trading using opposite Shinil Electronics and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| Shinil Electronics vs. FOODWELL Co | Shinil Electronics vs. DRB Industrial Co | Shinil Electronics vs. Industrial Bank | Shinil Electronics vs. Korea Industrial Co |
| GS Retail vs. KB Financial Group | GS Retail vs. Shinhan Financial Group | GS Retail vs. Hana Financial | GS Retail vs. Woori 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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