Correlation Between Zinus and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Zinus and Iljin 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 Zinus and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinus Inc and Iljin Display, you can compare the effects of market volatilities on Zinus and Iljin 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 Zinus with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Iljin Display.
Diversification Opportunities for Zinus and Iljin Display
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zinus and Iljin is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Zinus 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 Zinus Inc are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Zinus i.e., Zinus and Iljin Display go up and down completely randomly.
Pair Corralation between Zinus and Iljin Display
Assuming the 90 days trading horizon Zinus Inc is expected to generate 1.29 times more return on investment than Iljin Display. However, Zinus is 1.29 times more volatile than Iljin Display. It trades about 0.39 of its potential returns per unit of risk. Iljin Display is currently generating about 0.08 per unit of risk. If you would invest 2,140,000 in Zinus Inc on October 11, 2024 and sell it today you would earn a total of 495,000 from holding Zinus Inc or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Zinus Inc vs. Iljin Display
Performance |
| Timeline |
| Zinus Inc |
| Iljin Display |
Zinus and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinus and Iljin Display
The main advantage of trading using opposite Zinus and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinus position performs unexpectedly, Iljin 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Zinus vs. Handok Clean Tech | Zinus vs. LG Display Co | Zinus vs. Iljin Display | Zinus vs. Nice Information Telecommunication |
| Iljin Display vs. Nable Communications | Iljin Display vs. Ssangyong Information Communication | Iljin Display vs. Hankook Steel Co | Iljin Display vs. Nice Information Telecommunication |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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