Correlation Between GS Retail and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both GS Retail and Myoung Shin 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 GS Retail and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Myoung Shin Industrial, you can compare the effects of market volatilities on GS Retail and Myoung Shin 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 GS Retail with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Myoung Shin.
Diversification Opportunities for GS Retail and Myoung Shin
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 007070 and Myoung is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and GS Retail 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 GS Retail Co are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of GS Retail i.e., GS Retail and Myoung Shin go up and down completely randomly.
Pair Corralation between GS Retail and Myoung Shin
Assuming the 90 days trading horizon GS Retail Co is expected to generate 0.47 times more return on investment than Myoung Shin. However, GS Retail Co is 2.13 times less risky than Myoung Shin. It trades about 0.18 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.16 per unit of risk. If you would invest 2,170,000 in GS Retail Co on September 3, 2024 and sell it today you would earn a total of 145,000 from holding GS Retail Co or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
GS Retail Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| GS Retail |
| Myoung Shin Industrial |
GS Retail and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Myoung Shin
The main advantage of trading using opposite GS Retail and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| GS Retail vs. CU Medical Systems | GS Retail vs. Daejung Chemicals Metals | GS Retail vs. Alton Sports CoLtd | GS Retail vs. Hannong Chemicals |
| Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. UNISEM Co | Myoung Shin vs. RPBio Inc | Myoung Shin vs. Finebesteel |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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