Correlation Between Automobile and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Automobile and Shinsegae Food 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 Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automobile Pc and Shinsegae Food, you can compare the effects of market volatilities on Automobile and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automobile and Shinsegae Food.
Diversification Opportunities for Automobile and Shinsegae Food
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Automobile and Shinsegae is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Automobile Pc and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Automobile i.e., Automobile and Shinsegae Food go up and down completely randomly.
Pair Corralation between Automobile and Shinsegae Food
Assuming the 90 days trading horizon Automobile Pc is expected to under-perform the Shinsegae Food. But the stock apears to be less risky and, when comparing its historical volatility, Automobile Pc is 2.72 times less risky than Shinsegae Food. The stock trades about -0.17 of its potential returns per unit of risk. The Shinsegae Food is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,200,000 in Shinsegae Food on October 21, 2024 and sell it today you would earn a total of 200,000 from holding Shinsegae Food or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automobile Pc vs. Shinsegae Food
Performance |
| Timeline |
| Automobile Pc |
| Shinsegae Food |
Automobile and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automobile and Shinsegae Food
The main advantage of trading using opposite Automobile and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automobile position performs unexpectedly, Shinsegae Food 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 Food will offset losses from the drop in Shinsegae Food's long position.| Automobile vs. Shinsegae Food | Automobile vs. Coloray International Investment | Automobile vs. Haitai Confectionery Foods | Automobile vs. Nh Investment And |
| Shinsegae Food vs. Sempio Foods Co | Shinsegae Food vs. Infinitt Healthcare Co | Shinsegae Food vs. Organic Special Pet | Shinsegae Food vs. Samyang Foods 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |