Correlation Between Shinil Electronics and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Anam Electronics 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 Anam Electronics 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 Anam Electronics Co, you can compare the effects of market volatilities on Shinil Electronics and Anam Electronics 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 Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Anam Electronics.
Diversification Opportunities for Shinil Electronics and Anam Electronics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinil and Anam is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics 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 Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Anam Electronics go up and down completely randomly.
Pair Corralation between Shinil Electronics and Anam Electronics
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.57 times more return on investment than Anam Electronics. However, Shinil Electronics Co is 1.77 times less risky than Anam Electronics. It trades about 0.05 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.11 per unit of risk. If you would invest 143,500 in Shinil Electronics Co on August 31, 2024 and sell it today you would earn a total of 1,900 from holding Shinil Electronics Co or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Anam Electronics Co
Performance |
| Timeline |
| Shinil Electronics |
| Anam Electronics |
Shinil Electronics and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Anam Electronics
The main advantage of trading using opposite Shinil Electronics and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Shinil Electronics vs. LG Display | Shinil Electronics vs. Hyundai Motor | Shinil Electronics vs. Hyundai Motor Co | Shinil Electronics vs. Hyundai Motor Co |
| Anam Electronics vs. Hana Technology Co | Anam Electronics vs. Value Added Technology | Anam Electronics vs. AurosTechnology | Anam Electronics vs. Lotte Data Communication |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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