Correlation Between KyungIn Electronics and SillaJen
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and SillaJen 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 SillaJen 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 SillaJen, you can compare the effects of market volatilities on KyungIn Electronics and SillaJen 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 SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and SillaJen.
Diversification Opportunities for KyungIn Electronics and SillaJen
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KyungIn and SillaJen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen 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 SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and SillaJen go up and down completely randomly.
Pair Corralation between KyungIn Electronics and SillaJen
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.89 times more return on investment than SillaJen. However, KyungIn Electronics Co is 1.13 times less risky than SillaJen. It trades about 0.0 of its potential returns per unit of risk. SillaJen is currently generating about -0.05 per unit of risk. If you would invest 2,409,137 in KyungIn Electronics Co on September 4, 2024 and sell it today you would lose (369,137) from holding KyungIn Electronics Co or give up 15.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. SillaJen
Performance |
| Timeline |
| KyungIn Electronics |
| SillaJen |
KyungIn Electronics and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and SillaJen
The main advantage of trading using opposite KyungIn Electronics and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, SillaJen 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 SillaJen will offset losses from the drop in SillaJen's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| SillaJen vs. SCI Information Service | SillaJen vs. Hanjoo Light Metal | SillaJen vs. Nice Information Telecommunication | SillaJen vs. DONGKUK TED METAL |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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