Correlation Between Semyung Electric and HJ ShipBuilding
Can any of the company-specific risk be diversified away by investing in both Semyung Electric and HJ ShipBuilding 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 Semyung Electric and HJ ShipBuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semyung Electric Machinery and HJ ShipBuilding Construction, you can compare the effects of market volatilities on Semyung Electric and HJ ShipBuilding 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 Semyung Electric with a short position of HJ ShipBuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semyung Electric and HJ ShipBuilding.
Diversification Opportunities for Semyung Electric and HJ ShipBuilding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semyung and 097230 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Semyung Electric Machinery and HJ ShipBuilding Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJ ShipBuilding Cons and Semyung Electric 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 Semyung Electric Machinery are associated (or correlated) with HJ ShipBuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJ ShipBuilding Cons has no effect on the direction of Semyung Electric i.e., Semyung Electric and HJ ShipBuilding go up and down completely randomly.
Pair Corralation between Semyung Electric and HJ ShipBuilding
Assuming the 90 days trading horizon Semyung Electric Machinery is expected to generate 1.22 times more return on investment than HJ ShipBuilding. However, Semyung Electric is 1.22 times more volatile than HJ ShipBuilding Construction. It trades about 0.06 of its potential returns per unit of risk. HJ ShipBuilding Construction is currently generating about 0.04 per unit of risk. If you would invest 278,566 in Semyung Electric Machinery on December 2, 2024 and sell it today you would earn a total of 314,434 from holding Semyung Electric Machinery or generate 112.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semyung Electric Machinery vs. HJ ShipBuilding Construction
Performance |
| Timeline |
| Semyung Electric Mac |
| HJ ShipBuilding Cons |
Semyung Electric and HJ ShipBuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semyung Electric and HJ ShipBuilding
The main advantage of trading using opposite Semyung Electric and HJ ShipBuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semyung Electric position performs unexpectedly, HJ ShipBuilding 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 HJ ShipBuilding will offset losses from the drop in HJ ShipBuilding's long position.| Semyung Electric vs. Sejong Telecom | Semyung Electric vs. Nable Communications | Semyung Electric vs. CKH Food Health | Semyung Electric vs. PI Advanced Materials |
| HJ ShipBuilding vs. Nable Communications | HJ ShipBuilding vs. Dongbang Transport Logistics | HJ ShipBuilding vs. Neungyule Education | HJ ShipBuilding vs. Kukdong Oil Chemicals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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