Correlation Between SHINWON STRUCTION and Yooshin Engineering
Can any of the company-specific risk be diversified away by investing in both SHINWON STRUCTION and Yooshin Engineering 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 SHINWON STRUCTION and Yooshin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHINWON STRUCTION COMPANY and Yooshin Engineering, you can compare the effects of market volatilities on SHINWON STRUCTION and Yooshin Engineering 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 SHINWON STRUCTION with a short position of Yooshin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINWON STRUCTION and Yooshin Engineering.
Diversification Opportunities for SHINWON STRUCTION and Yooshin Engineering
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between SHINWON and Yooshin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SHINWON STRUCTION COMPANY and Yooshin Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yooshin Engineering and SHINWON STRUCTION 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 SHINWON STRUCTION COMPANY are associated (or correlated) with Yooshin Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yooshin Engineering has no effect on the direction of SHINWON STRUCTION i.e., SHINWON STRUCTION and Yooshin Engineering go up and down completely randomly.
Pair Corralation between SHINWON STRUCTION and Yooshin Engineering
Assuming the 90 days trading horizon SHINWON STRUCTION is expected to generate 3.57 times less return on investment than Yooshin Engineering. In addition to that, SHINWON STRUCTION is 1.7 times more volatile than Yooshin Engineering. It trades about 0.03 of its total potential returns per unit of risk. Yooshin Engineering is currently generating about 0.18 per unit of volatility. If you would invest 2,230,000 in Yooshin Engineering on August 24, 2024 and sell it today you would earn a total of 315,000 from holding Yooshin Engineering or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHINWON STRUCTION COMPANY vs. Yooshin Engineering
Performance |
| Timeline |
| SHINWON STRUCTION PANY |
| Yooshin Engineering |
SHINWON STRUCTION and Yooshin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHINWON STRUCTION and Yooshin Engineering
The main advantage of trading using opposite SHINWON STRUCTION and Yooshin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINWON STRUCTION position performs unexpectedly, Yooshin Engineering 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 Yooshin Engineering will offset losses from the drop in Yooshin Engineering's long position.| SHINWON STRUCTION vs. Ssangyong Information Communication | SHINWON STRUCTION vs. Sangsin Energy Display | SHINWON STRUCTION vs. InnoTherapy | SHINWON STRUCTION vs. Jinro Distillers Co |
| Yooshin Engineering vs. Shinhan Inverse Silver | Yooshin Engineering vs. Sempio Foods Co | Yooshin Engineering vs. Hansol Homedeco Co | Yooshin Engineering vs. Hyundai Home Shopping |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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