Correlation Between Sinil Pharmaceutical and Kolon Life
Can any of the company-specific risk be diversified away by investing in both Sinil Pharmaceutical and Kolon Life 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 Kolon Life 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 Kolon Life Science, you can compare the effects of market volatilities on Sinil Pharmaceutical and Kolon Life 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 Kolon Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinil Pharmaceutical and Kolon Life.
Diversification Opportunities for Sinil Pharmaceutical and Kolon Life
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sinil and Kolon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sinil Pharmaceutical Co and Kolon Life Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolon Life Science 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 Kolon Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolon Life Science has no effect on the direction of Sinil Pharmaceutical i.e., Sinil Pharmaceutical and Kolon Life go up and down completely randomly.
Pair Corralation between Sinil Pharmaceutical and Kolon Life
Assuming the 90 days trading horizon Sinil Pharmaceutical Co is expected to generate 0.57 times more return on investment than Kolon Life. However, Sinil Pharmaceutical Co is 1.74 times less risky than Kolon Life. It trades about -0.02 of its potential returns per unit of risk. Kolon Life Science is currently generating about -0.01 per unit of risk. If you would invest 744,448 in Sinil Pharmaceutical Co on September 14, 2024 and sell it today you would lose (94,448) from holding Sinil Pharmaceutical Co or give up 12.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Sinil Pharmaceutical Co vs. Kolon Life Science
Performance |
| Timeline |
| Sinil Pharmaceutical |
| Kolon Life Science |
Sinil Pharmaceutical and Kolon Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinil Pharmaceutical and Kolon Life
The main advantage of trading using opposite Sinil Pharmaceutical and Kolon Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinil Pharmaceutical position performs unexpectedly, Kolon Life 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 Kolon Life will offset losses from the drop in Kolon Life's long position.| Sinil Pharmaceutical vs. Automobile Pc | Sinil Pharmaceutical vs. Barunson Entertainment Arts | Sinil Pharmaceutical vs. YG Entertainment | Sinil Pharmaceutical vs. Next Entertainment World |
| Kolon Life vs. CKH Food Health | Kolon Life vs. Nice Information Telecommunication | Kolon Life vs. Korea Information Engineering | Kolon Life vs. FoodNamoo |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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