Correlation Between KyungIn Electronics and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Shinil Electronics 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 KyungIn Electronics and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and Shinil Electronics Co, you can compare the effects of market volatilities on KyungIn Electronics and Shinil Electronics 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 KyungIn Electronics with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Shinil Electronics.
Diversification Opportunities for KyungIn Electronics and Shinil Electronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between KyungIn and Shinil is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and KyungIn Electronics 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 KyungIn Electronics Co are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Shinil Electronics go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Shinil Electronics
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 2.47 times more return on investment than Shinil Electronics. However, KyungIn Electronics is 2.47 times more volatile than Shinil Electronics Co. It trades about 0.0 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 2,267,432 in KyungIn Electronics Co on November 27, 2024 and sell it today you would lose (365,432) from holding KyungIn Electronics Co or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Shinil Electronics Co
Performance |
| Timeline |
| KyungIn Electronics |
| Shinil Electronics |
KyungIn Electronics and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Shinil Electronics
The main advantage of trading using opposite KyungIn Electronics and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Shinil Electronics 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.| KyungIn Electronics vs. Innowireless Co | KyungIn Electronics vs. ITM Semiconductor Co | KyungIn Electronics vs. Mgame Corp | KyungIn Electronics vs. Daishin Information Communications |
| Shinil Electronics vs. Nh Investment And | Shinil Electronics vs. SBI Investment KOREA | Shinil Electronics vs. Aju IB Investment | Shinil Electronics vs. PLAYWITH |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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