Correlation Between Oriental Precision and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Oriental Precision and Shinsegae Information 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 Oriental Precision and Shinsegae Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Precision Engineering and Shinsegae Information Communication, you can compare the effects of market volatilities on Oriental Precision and Shinsegae Information 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 Oriental Precision with a short position of Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Precision and Shinsegae Information.
Diversification Opportunities for Oriental Precision and Shinsegae Information
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriental and Shinsegae is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Precision Engineering and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information and Oriental Precision 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 Oriental Precision Engineering are associated (or correlated) with Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Oriental Precision i.e., Oriental Precision and Shinsegae Information go up and down completely randomly.
Pair Corralation between Oriental Precision and Shinsegae Information
Assuming the 90 days trading horizon Oriental Precision Engineering is expected to generate 1.1 times more return on investment than Shinsegae Information. However, Oriental Precision is 1.1 times more volatile than Shinsegae Information Communication. It trades about 0.07 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about 0.03 per unit of risk. If you would invest 238,919 in Oriental Precision Engineering on October 13, 2024 and sell it today you would earn a total of 315,081 from holding Oriental Precision Engineering or generate 131.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Precision Engineering vs. Shinsegae Information Communic
Performance |
| Timeline |
| Oriental Precision |
| Shinsegae Information |
Oriental Precision and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Precision and Shinsegae Information
The main advantage of trading using opposite Oriental Precision and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Precision position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| Oriental Precision vs. Alton Sports CoLtd | Oriental Precision vs. LS Materials | Oriental Precision vs. INNOX Advanced Materials | Oriental Precision vs. RF Materials Co |
| Shinsegae Information vs. Pan Entertainment Co | Shinsegae Information vs. Barunson Entertainment Arts | Shinsegae Information vs. SKONEC Entertainment Co | Shinsegae Information vs. SM Entertainment Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |