Correlation Between Busan Industrial and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both Busan Industrial and Shinsung Delta 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 Busan Industrial and Shinsung Delta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Industrial Co and Shinsung Delta Tech, you can compare the effects of market volatilities on Busan Industrial and Shinsung Delta 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 Busan Industrial with a short position of Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Industrial and Shinsung Delta.
Diversification Opportunities for Busan Industrial and Shinsung Delta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Busan and Shinsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Busan Industrial Co and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta Tech and Busan Industrial 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 Busan Industrial Co are associated (or correlated) with Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of Busan Industrial i.e., Busan Industrial and Shinsung Delta go up and down completely randomly.
Pair Corralation between Busan Industrial and Shinsung Delta
Assuming the 90 days trading horizon Busan Industrial Co is expected to generate 1.12 times more return on investment than Shinsung Delta. However, Busan Industrial is 1.12 times more volatile than Shinsung Delta Tech. It trades about 0.27 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about -0.08 per unit of risk. If you would invest 6,840,000 in Busan Industrial Co on January 22, 2025 and sell it today you would earn a total of 1,900,000 from holding Busan Industrial Co or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Busan Industrial Co vs. Shinsung Delta Tech
Performance |
| Timeline |
| Busan Industrial |
| Shinsung Delta Tech |
Busan Industrial and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Industrial and Shinsung Delta
The main advantage of trading using opposite Busan Industrial and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Industrial position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| Busan Industrial vs. AptaBio Therapeutics | Busan Industrial vs. Daewoo SBI SPAC | Busan Industrial vs. Dream Security co | Busan Industrial vs. Microfriend |
| Shinsung Delta vs. WooDeumGee Farm Co, | Shinsung Delta vs. Daewoo Engineering Construction | Shinsung Delta vs. Sungdo Engineering Construction | Shinsung Delta vs. Youngsin Metal Industrial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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