Correlation Between Dongjin Semichem and SCI Information
Can any of the company-specific risk be diversified away by investing in both Dongjin Semichem and SCI Information 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 Dongjin Semichem and SCI Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongjin Semichem Co and SCI Information Service, you can compare the effects of market volatilities on Dongjin Semichem and SCI Information 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 Dongjin Semichem with a short position of SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjin Semichem and SCI Information.
Diversification Opportunities for Dongjin Semichem and SCI Information
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongjin and SCI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongjin Semichem Co and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service and Dongjin Semichem 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 Dongjin Semichem Co are associated (or correlated) with SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of Dongjin Semichem i.e., Dongjin Semichem and SCI Information go up and down completely randomly.
Pair Corralation between Dongjin Semichem and SCI Information
Assuming the 90 days trading horizon Dongjin Semichem Co is expected to under-perform the SCI Information. In addition to that, Dongjin Semichem is 1.26 times more volatile than SCI Information Service. It trades about -0.19 of its total potential returns per unit of risk. SCI Information Service is currently generating about -0.12 per unit of volatility. If you would invest 226,500 in SCI Information Service on September 12, 2024 and sell it today you would lose (14,500) from holding SCI Information Service or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjin Semichem Co vs. SCI Information Service
Performance |
| Timeline |
| Dongjin Semichem |
| SCI Information Service |
Dongjin Semichem and SCI Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjin Semichem and SCI Information
The main advantage of trading using opposite Dongjin Semichem and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjin Semichem position performs unexpectedly, SCI Information 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 SCI Information will offset losses from the drop in SCI Information's long position.| Dongjin Semichem vs. Wonik Ips Co | Dongjin Semichem vs. Nepes | Dongjin Semichem vs. LEENO Industrial | Dongjin Semichem vs. LF Co |
| SCI Information vs. KB Financial Group | SCI Information vs. Shinhan Financial Group | SCI Information vs. Hana Financial | SCI Information 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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