Correlation Between Shinil Electronics and SCI Information
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and SCI Information 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 SCI Information 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 SCI Information Service, you can compare the effects of market volatilities on Shinil Electronics and SCI Information 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 SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and SCI Information.
Diversification Opportunities for Shinil Electronics and SCI Information
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinil and SCI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service 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 SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and SCI Information go up and down completely randomly.
Pair Corralation between Shinil Electronics and SCI Information
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.49 times more return on investment than SCI Information. However, Shinil Electronics Co is 2.04 times less risky than SCI Information. It trades about -0.06 of its potential returns per unit of risk. SCI Information Service is currently generating about -0.03 per unit of risk. If you would invest 207,823 in Shinil Electronics Co on November 7, 2024 and sell it today you would lose (68,023) from holding Shinil Electronics Co or give up 32.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. SCI Information Service
Performance |
| Timeline |
| Shinil Electronics |
| SCI Information Service |
Shinil Electronics and SCI Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and SCI Information
The main advantage of trading using opposite Shinil Electronics and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, SCI Information 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 SCI Information will offset losses from the drop in SCI Information's long position.| Shinil Electronics vs. TS Investment Corp | Shinil Electronics vs. EBEST Investment Securities | Shinil Electronics vs. Digital Power Communications | Shinil Electronics vs. KTB Investment Securities |
| SCI Information vs. Hankukpackage Co | SCI Information vs. Daesung Hi Tech Co | SCI Information vs. Innowireless Co | SCI Information vs. LG Household Healthcare |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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