Correlation Between Shinil Electronics and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Shinil Electronics and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Mobile Appliance.
Diversification Opportunities for Shinil Electronics and Mobile Appliance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and Mobile is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Mobile Appliance go up and down completely randomly.
Pair Corralation between Shinil Electronics and Mobile Appliance
Assuming the 90 days trading horizon Shinil Electronics is expected to generate 6.23 times less return on investment than Mobile Appliance. But when comparing it to its historical volatility, Shinil Electronics Co is 2.76 times less risky than Mobile Appliance. It trades about 0.04 of its potential returns per unit of risk. Mobile Appliance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 215,500 in Mobile Appliance on August 29, 2024 and sell it today you would earn a total of 11,000 from holding Mobile Appliance or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Mobile Appliance
Performance |
| Timeline |
| Shinil Electronics |
| Mobile Appliance |
Shinil Electronics and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Mobile Appliance
The main advantage of trading using opposite Shinil Electronics and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Shinil Electronics vs. KMH Hitech Co | Shinil Electronics vs. GemVaxKAEL CoLtd | Shinil Electronics vs. Busan Industrial Co | Shinil Electronics vs. Busan Ind |
| Mobile Appliance vs. Automobile Pc | Mobile Appliance vs. Korean Reinsurance Co | Mobile Appliance vs. DSC Investment | Mobile Appliance vs. Stic Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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