Correlation Between Shinil Electronics and Hansol Chemica
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Hansol Chemica 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 Hansol Chemica 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 Hansol Chemica, you can compare the effects of market volatilities on Shinil Electronics and Hansol Chemica 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 Hansol Chemica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Hansol Chemica.
Diversification Opportunities for Shinil Electronics and Hansol Chemica
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinil and Hansol is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Hansol Chemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemica 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 Hansol Chemica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemica has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Hansol Chemica go up and down completely randomly.
Pair Corralation between Shinil Electronics and Hansol Chemica
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.47 times more return on investment than Hansol Chemica. However, Shinil Electronics Co is 2.12 times less risky than Hansol Chemica. It trades about -0.06 of its potential returns per unit of risk. Hansol Chemica is currently generating about -0.05 per unit of risk. If you would invest 210,303 in Shinil Electronics Co on September 1, 2024 and sell it today you would lose (64,803) from holding Shinil Electronics Co or give up 30.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.77% |
| Values | Daily Returns |
Shinil Electronics Co vs. Hansol Chemica
Performance |
| Timeline |
| Shinil Electronics |
| Hansol Chemica |
Shinil Electronics and Hansol Chemica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Hansol Chemica
The main advantage of trading using opposite Shinil Electronics and Hansol Chemica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Hansol Chemica 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 Hansol Chemica will offset losses from the drop in Hansol Chemica's long position.| Shinil Electronics vs. LG Display | Shinil Electronics vs. Hyundai Motor | Shinil Electronics vs. Hyundai Motor Co | Shinil Electronics vs. Hyundai Motor Co |
| Hansol Chemica vs. Display Tech Co | Hansol Chemica vs. LG Display Co | Hansol Chemica vs. Inzi Display CoLtd | Hansol Chemica vs. Eagle Veterinary Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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