Correlation Between Shinsegae and HJ ShipBuilding
Can any of the company-specific risk be diversified away by investing in both Shinsegae and HJ ShipBuilding 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 Shinsegae and HJ ShipBuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae and HJ ShipBuilding Construction, you can compare the effects of market volatilities on Shinsegae and HJ ShipBuilding 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 Shinsegae with a short position of HJ ShipBuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae and HJ ShipBuilding.
Diversification Opportunities for Shinsegae and HJ ShipBuilding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinsegae and 097230 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae and HJ ShipBuilding Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJ ShipBuilding Cons and Shinsegae 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 Shinsegae are associated (or correlated) with HJ ShipBuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJ ShipBuilding Cons has no effect on the direction of Shinsegae i.e., Shinsegae and HJ ShipBuilding go up and down completely randomly.
Pair Corralation between Shinsegae and HJ ShipBuilding
Assuming the 90 days trading horizon Shinsegae is expected to under-perform the HJ ShipBuilding. But the stock apears to be less risky and, when comparing its historical volatility, Shinsegae is 2.11 times less risky than HJ ShipBuilding. The stock trades about -0.03 of its potential returns per unit of risk. The HJ ShipBuilding Construction is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 383,000 in HJ ShipBuilding Construction on November 27, 2024 and sell it today you would earn a total of 251,000 from holding HJ ShipBuilding Construction or generate 65.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae vs. HJ ShipBuilding Construction
Performance |
| Timeline |
| Shinsegae |
| HJ ShipBuilding Cons |
Shinsegae and HJ ShipBuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae and HJ ShipBuilding
The main advantage of trading using opposite Shinsegae and HJ ShipBuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae position performs unexpectedly, HJ ShipBuilding 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 HJ ShipBuilding will offset losses from the drop in HJ ShipBuilding's long position.| Shinsegae vs. Songwon Industrial Co | Shinsegae vs. Daejung Chemicals Metals | Shinsegae vs. SK Chemicals Co | Shinsegae vs. Samhwa Paint Industrial |
| HJ ShipBuilding vs. Cube Entertainment | HJ ShipBuilding vs. Pan Entertainment Co | HJ ShipBuilding vs. SM Entertainment Co | HJ ShipBuilding vs. JYP Entertainment Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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