Correlation Between Shinil Electronics and Kyung Chang
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Kyung Chang 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 Kyung Chang 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 Kyung Chang Industrial, you can compare the effects of market volatilities on Shinil Electronics and Kyung Chang 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 Kyung Chang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Kyung Chang.
Diversification Opportunities for Shinil Electronics and Kyung Chang
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and Kyung is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Kyung Chang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung Chang Industrial 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 Kyung Chang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung Chang Industrial has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Kyung Chang go up and down completely randomly.
Pair Corralation between Shinil Electronics and Kyung Chang
Assuming the 90 days trading horizon Shinil Electronics Co is expected to under-perform the Kyung Chang. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Electronics Co is 3.18 times less risky than Kyung Chang. The stock trades about -0.09 of its potential returns per unit of risk. The Kyung Chang Industrial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 230,500 in Kyung Chang Industrial on September 4, 2024 and sell it today you would lose (34,800) from holding Kyung Chang Industrial or give up 15.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Kyung Chang Industrial
Performance |
| Timeline |
| Shinil Electronics |
| Kyung Chang Industrial |
Shinil Electronics and Kyung Chang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Kyung Chang
The main advantage of trading using opposite Shinil Electronics and Kyung Chang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Kyung Chang 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 Kyung Chang will offset losses from the drop in Kyung Chang's long position.| Shinil Electronics vs. Korea Real Estate | Shinil Electronics vs. Busan Industrial Co | Shinil Electronics vs. UNISEM Co | Shinil Electronics vs. RPBio Inc |
| Kyung Chang vs. Shinil Electronics Co | Kyung Chang vs. Korean Reinsurance Co | Kyung Chang vs. Daejoo Electronic Materials | Kyung Chang vs. Samyoung Electronics Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |