Correlation Between Sinil Pharmaceutical and Korean Reinsurance
Can any of the company-specific risk be diversified away by investing in both Sinil Pharmaceutical and Korean Reinsurance 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 Sinil Pharmaceutical and Korean Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinil Pharmaceutical Co and Korean Reinsurance Co, you can compare the effects of market volatilities on Sinil Pharmaceutical and Korean Reinsurance 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 Sinil Pharmaceutical with a short position of Korean Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinil Pharmaceutical and Korean Reinsurance.
Diversification Opportunities for Sinil Pharmaceutical and Korean Reinsurance
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sinil and Korean is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sinil Pharmaceutical Co and Korean Reinsurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Reinsurance and Sinil Pharmaceutical 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 Sinil Pharmaceutical Co are associated (or correlated) with Korean Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Reinsurance has no effect on the direction of Sinil Pharmaceutical i.e., Sinil Pharmaceutical and Korean Reinsurance go up and down completely randomly.
Pair Corralation between Sinil Pharmaceutical and Korean Reinsurance
Assuming the 90 days trading horizon Sinil Pharmaceutical Co is expected to under-perform the Korean Reinsurance. But the stock apears to be less risky and, when comparing its historical volatility, Sinil Pharmaceutical Co is 1.08 times less risky than Korean Reinsurance. The stock trades about -0.29 of its potential returns per unit of risk. The Korean Reinsurance Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 794,000 in Korean Reinsurance Co on September 12, 2024 and sell it today you would earn a total of 5,000 from holding Korean Reinsurance Co or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinil Pharmaceutical Co vs. Korean Reinsurance Co
Performance |
| Timeline |
| Sinil Pharmaceutical |
| Korean Reinsurance |
Sinil Pharmaceutical and Korean Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinil Pharmaceutical and Korean Reinsurance
The main advantage of trading using opposite Sinil Pharmaceutical and Korean Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinil Pharmaceutical position performs unexpectedly, Korean Reinsurance 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 Korean Reinsurance will offset losses from the drop in Korean Reinsurance's long position.| Sinil Pharmaceutical vs. Korean Reinsurance Co | Sinil Pharmaceutical vs. BNK Financial Group | Sinil Pharmaceutical vs. Daejung Chemicals Metals | Sinil Pharmaceutical vs. Settlebank |
| Korean Reinsurance vs. Samsung Electronics Co | Korean Reinsurance vs. Samsung Electronics Co | Korean Reinsurance vs. SK Hynix | Korean Reinsurance vs. POSCO Holdings |
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..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |