Correlation Between Korea Air and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Korea Air and Inzi Display 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 Korea Air and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Air Svc and Inzi Display CoLtd, you can compare the effects of market volatilities on Korea Air and Inzi Display 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 Korea Air with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Air and Inzi Display.
Diversification Opportunities for Korea Air and Inzi Display
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korea and Inzi is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Korea Air Svc and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Korea Air 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 Korea Air Svc are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Korea Air i.e., Korea Air and Inzi Display go up and down completely randomly.
Pair Corralation between Korea Air and Inzi Display
Assuming the 90 days trading horizon Korea Air Svc is expected to under-perform the Inzi Display. In addition to that, Korea Air is 1.71 times more volatile than Inzi Display CoLtd. It trades about -0.1 of its total potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.16 per unit of volatility. If you would invest 139,900 in Inzi Display CoLtd on November 2, 2024 and sell it today you would lose (4,200) from holding Inzi Display CoLtd or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Air Svc vs. Inzi Display CoLtd
Performance |
| Timeline |
| Korea Air Svc |
| Inzi Display CoLtd |
Korea Air and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Air and Inzi Display
The main advantage of trading using opposite Korea Air and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Air position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Korea Air vs. Kukdong Oil Chemicals | Korea Air vs. Ssangyong Information Communication | Korea Air vs. KPX Green Chemical | Korea Air vs. Hanwha Chemical Corp |
| Inzi Display vs. Polaris Office Corp | Inzi Display vs. Hankook Furniture Co | Inzi Display vs. Digital Imaging Technology | Inzi Display vs. Woori Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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