Correlation Between Shinil Industrial and DRB Industrial
Can any of the company-specific risk be diversified away by investing in both Shinil Industrial and DRB Industrial 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 DRB Industrial 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 DRB Industrial Co, you can compare the effects of market volatilities on Shinil Industrial and DRB Industrial 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 DRB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Industrial and DRB Industrial.
Diversification Opportunities for Shinil Industrial and DRB Industrial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinil and DRB is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Industrial Co and DRB Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DRB Industrial 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 DRB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DRB Industrial has no effect on the direction of Shinil Industrial i.e., Shinil Industrial and DRB Industrial go up and down completely randomly.
Pair Corralation between Shinil Industrial and DRB Industrial
Assuming the 90 days trading horizon Shinil Industrial Co is expected to under-perform the DRB Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Industrial Co is 2.67 times less risky than DRB Industrial. The stock trades about -0.02 of its potential returns per unit of risk. The DRB Industrial Co is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 672,000 in DRB Industrial Co on October 28, 2024 and sell it today you would earn a total of 88,000 from holding DRB Industrial Co or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Industrial Co vs. DRB Industrial Co
Performance |
| Timeline |
| Shinil Industrial |
| DRB Industrial |
Shinil Industrial and DRB Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Industrial and DRB Industrial
The main advantage of trading using opposite Shinil Industrial and DRB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Industrial position performs unexpectedly, DRB Industrial 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 DRB Industrial will offset losses from the drop in DRB Industrial'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 |
| DRB Industrial vs. KB Financial Group | DRB Industrial vs. Shinhan Financial Group | DRB Industrial vs. Hana Financial | DRB Industrial vs. Woori 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |