Correlation Between Kyung In and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Kyung In and Inzi Display 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 Kyung In and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung In Synthetic Corp and Inzi Display CoLtd, you can compare the effects of market volatilities on Kyung In and Inzi Display 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 Kyung In with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Inzi Display.
Diversification Opportunities for Kyung In and Inzi Display
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kyung and Inzi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Kyung In 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 Kyung In Synthetic Corp are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Kyung In i.e., Kyung In and Inzi Display go up and down completely randomly.
Pair Corralation between Kyung In and Inzi Display
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the Inzi Display. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 1.74 times less risky than Inzi Display. The stock trades about -0.04 of its potential returns per unit of risk. The Inzi Display CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 168,366 in Inzi Display CoLtd on August 30, 2024 and sell it today you would lose (28,866) from holding Inzi Display CoLtd or give up 17.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Inzi Display CoLtd
Performance |
| Timeline |
| Kyung In Synthetic |
| Inzi Display CoLtd |
Kyung In and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Inzi Display
The main advantage of trading using opposite Kyung In and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Kyung In vs. Daishin Information Communications | Kyung In vs. Korea Information Communications | Kyung In vs. Pureun Mutual Savings | Kyung In vs. Korean Reinsurance Co |
| Inzi Display vs. Daou Data Corp | Inzi Display vs. Busan Industrial Co | Inzi Display vs. Busan Ind | Inzi Display vs. Shinhan WTI Futures |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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