Correlation Between Myoung Shin and Chinyang Hold
Can any of the company-specific risk be diversified away by investing in both Myoung Shin and Chinyang Hold 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 Chinyang Hold 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 Chinyang Hold, you can compare the effects of market volatilities on Myoung Shin and Chinyang Hold 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 Chinyang Hold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and Chinyang Hold.
Diversification Opportunities for Myoung Shin and Chinyang Hold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Myoung and Chinyang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial and Chinyang Hold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinyang Hold 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 Chinyang Hold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinyang Hold has no effect on the direction of Myoung Shin i.e., Myoung Shin and Chinyang Hold go up and down completely randomly.
Pair Corralation between Myoung Shin and Chinyang Hold
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to under-perform the Chinyang Hold. In addition to that, Myoung Shin is 3.26 times more volatile than Chinyang Hold. It trades about -0.02 of its total potential returns per unit of risk. Chinyang Hold is currently generating about 0.02 per unit of volatility. If you would invest 298,844 in Chinyang Hold on September 4, 2024 and sell it today you would earn a total of 13,656 from holding Chinyang Hold or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myoung Shin Industrial vs. Chinyang Hold
Performance |
| Timeline |
| Myoung Shin Industrial |
| Chinyang Hold |
Myoung Shin and Chinyang Hold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and Chinyang Hold
The main advantage of trading using opposite Myoung Shin and Chinyang Hold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin position performs unexpectedly, Chinyang Hold 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 Chinyang Hold will offset losses from the drop in Chinyang Hold's long position.| Myoung Shin vs. Heungkuk Metaltech CoLtd | Myoung Shin vs. Daejung Chemicals Metals | Myoung Shin vs. Histeel | Myoung Shin vs. Hankook Steel Co |
| Chinyang Hold vs. Sunny Electronics Corp | Chinyang Hold vs. Sungwoo Electronics Co | Chinyang Hold vs. Grand Korea Leisure | Chinyang Hold vs. Display Tech Co |
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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