Correlation Between Shinil Electronics and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Sangsin Energy 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 Sangsin Energy 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 Sangsin Energy Display, you can compare the effects of market volatilities on Shinil Electronics and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Sangsin Energy.
Diversification Opportunities for Shinil Electronics and Sangsin Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinil and Sangsin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Sangsin Energy go up and down completely randomly.
Pair Corralation between Shinil Electronics and Sangsin Energy
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.41 times more return on investment than Sangsin Energy. However, Shinil Electronics Co is 2.45 times less risky than Sangsin Energy. It trades about -0.06 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.04 per unit of risk. If you would invest 205,343 in Shinil Electronics Co on October 28, 2024 and sell it today you would lose (64,643) from holding Shinil Electronics Co or give up 31.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Sangsin Energy Display
Performance |
| Timeline |
| Shinil Electronics |
| Sangsin Energy Display |
Shinil Electronics and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Sangsin Energy
The main advantage of trading using opposite Shinil Electronics and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Shinil Electronics vs. Narae Nanotech Corp | Shinil Electronics vs. Seah Steel Corp | Shinil Electronics vs. DONGKUK STEEL MILL | Shinil Electronics vs. V One Tech Co |
| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. KB Financial Group | Sangsin Energy vs. Shinhan Financial Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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