Correlation Between Shinil Industrial and InfoBank
Can any of the company-specific risk be diversified away by investing in both Shinil Industrial and InfoBank 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 Industrial and InfoBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Industrial Co and InfoBank, you can compare the effects of market volatilities on Shinil Industrial and InfoBank 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 Industrial with a short position of InfoBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Industrial and InfoBank.
Diversification Opportunities for Shinil Industrial and InfoBank
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinil and InfoBank is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Industrial Co and InfoBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfoBank and Shinil Industrial 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 Industrial Co are associated (or correlated) with InfoBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfoBank has no effect on the direction of Shinil Industrial i.e., Shinil Industrial and InfoBank go up and down completely randomly.
Pair Corralation between Shinil Industrial and InfoBank
Assuming the 90 days trading horizon Shinil Industrial Co is expected to generate 0.24 times more return on investment than InfoBank. However, Shinil Industrial Co is 4.13 times less risky than InfoBank. It trades about -0.02 of its potential returns per unit of risk. InfoBank is currently generating about -0.08 per unit of risk. If you would invest 141,000 in Shinil Industrial Co on October 28, 2024 and sell it today you would lose (300.00) from holding Shinil Industrial Co or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Industrial Co vs. InfoBank
Performance |
| Timeline |
| Shinil Industrial |
| InfoBank |
Shinil Industrial and InfoBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Industrial and InfoBank
The main advantage of trading using opposite Shinil Industrial and InfoBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Industrial position performs unexpectedly, InfoBank 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 InfoBank will offset losses from the drop in InfoBank's long position.| Shinil Industrial vs. Solution Advanced Technology | Shinil Industrial vs. Daou Technology | Shinil Industrial vs. Global Standard Technology | Shinil Industrial vs. AeroSpace Technology of |
| InfoBank vs. Samsung Electronics Co | InfoBank vs. Samsung Electronics Co | InfoBank vs. SK Hynix | InfoBank vs. HMM 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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