Correlation Between Automobile and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Automobile 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 Automobile and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automobile Pc and Iljin Display, you can compare the effects of market volatilities on Automobile 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 Automobile with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automobile and Iljin Display.
Diversification Opportunities for Automobile and Iljin Display
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Automobile and Iljin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Automobile Pc and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Automobile 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 Automobile Pc 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 Automobile i.e., Automobile and Iljin Display go up and down completely randomly.
Pair Corralation between Automobile and Iljin Display
Assuming the 90 days trading horizon Automobile Pc is expected to under-perform the Iljin Display. But the stock apears to be less risky and, when comparing its historical volatility, Automobile Pc is 1.13 times less risky than Iljin Display. The stock trades about -0.28 of its potential returns per unit of risk. The Iljin Display is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 88,300 in Iljin Display on December 1, 2024 and sell it today you would earn a total of 400.00 from holding Iljin Display or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automobile Pc vs. Iljin Display
Performance |
| Timeline |
| Automobile Pc |
| Iljin Display |
Automobile and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automobile and Iljin Display
The main advantage of trading using opposite Automobile and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automobile 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.| Automobile vs. KTB Investment Securities | Automobile vs. Dongnam Chemical Co | Automobile vs. SBI Investment KOREA | Automobile vs. Korea Petro Chemical |
| Iljin Display vs. CKH Food Health | Iljin Display vs. BGF Retail Co | Iljin Display vs. Korea Shipbuilding Offshore | Iljin Display vs. Samwha Electronics 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |