Correlation Between Myoung Shin and SHINWON STRUCTION
Can any of the company-specific risk be diversified away by investing in both Myoung Shin and SHINWON STRUCTION 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 Myoung Shin and SHINWON STRUCTION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and SHINWON STRUCTION COMPANY, you can compare the effects of market volatilities on Myoung Shin and SHINWON STRUCTION 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 Myoung Shin with a short position of SHINWON STRUCTION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and SHINWON STRUCTION.
Diversification Opportunities for Myoung Shin and SHINWON STRUCTION
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Myoung and SHINWON is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial and SHINWON STRUCTION COMPANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHINWON STRUCTION PANY and Myoung Shin 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 Myoung Shin Industrial are associated (or correlated) with SHINWON STRUCTION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHINWON STRUCTION PANY has no effect on the direction of Myoung Shin i.e., Myoung Shin and SHINWON STRUCTION go up and down completely randomly.
Pair Corralation between Myoung Shin and SHINWON STRUCTION
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to under-perform the SHINWON STRUCTION. But the stock apears to be less risky and, when comparing its historical volatility, Myoung Shin Industrial is 1.49 times less risky than SHINWON STRUCTION. The stock trades about -0.06 of its potential returns per unit of risk. The SHINWON STRUCTION COMPANY is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 298,000 in SHINWON STRUCTION COMPANY on November 3, 2024 and sell it today you would lose (16,500) from holding SHINWON STRUCTION COMPANY or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myoung Shin Industrial vs. SHINWON STRUCTION COMPANY
Performance |
| Timeline |
| Myoung Shin Industrial |
| SHINWON STRUCTION PANY |
Myoung Shin and SHINWON STRUCTION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and SHINWON STRUCTION
The main advantage of trading using opposite Myoung Shin and SHINWON STRUCTION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin position performs unexpectedly, SHINWON STRUCTION 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 SHINWON STRUCTION will offset losses from the drop in SHINWON STRUCTION's long position.| Myoung Shin vs. Seohee Construction Co | Myoung Shin vs. Lotte Data Communication | Myoung Shin vs. Mobile Appliance | Myoung Shin vs. Shinsegae Engineering Construction |
| SHINWON STRUCTION vs. Sempio Foods Co | SHINWON STRUCTION vs. Shinsegae Food | SHINWON STRUCTION vs. Digital Imaging Technology | SHINWON STRUCTION vs. Hwangkum Steel 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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