Correlation Between Shinil Electronics and CKH Food
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Shinil Electronics and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and CKH Food.
Diversification Opportunities for Shinil Electronics and CKH Food
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and CKH is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and CKH Food go up and down completely randomly.
Pair Corralation between Shinil Electronics and CKH Food
Assuming the 90 days trading horizon Shinil Electronics Co is expected to generate 0.3 times more return on investment than CKH Food. However, Shinil Electronics Co is 3.3 times less risky than CKH Food. It trades about -0.05 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.09 per unit of risk. If you would invest 141,100 in Shinil Electronics Co on November 3, 2024 and sell it today you would lose (700.00) from holding Shinil Electronics Co or give up 0.5% 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. CKH Food Health
Performance |
| Timeline |
| Shinil Electronics |
| CKH Food Health |
Shinil Electronics and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and CKH Food
The main advantage of trading using opposite Shinil Electronics and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| Shinil Electronics vs. Youngbo Chemical Co | Shinil Electronics vs. Polaris Office Corp | Shinil Electronics vs. Cuckoo Homesys Co | Shinil Electronics vs. Namhae Chemical |
| CKH Food vs. Kg Chemical | CKH Food vs. Daishin Information Communications | CKH Food vs. SK Telecom Co | CKH Food vs. ECSTELECOM 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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