Correlation Between Choil Aluminum and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both Choil Aluminum and Shinil Industrial 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 Choil Aluminum and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choil Aluminum and Shinil Industrial Co, you can compare the effects of market volatilities on Choil Aluminum and Shinil Industrial 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 Choil Aluminum with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choil Aluminum and Shinil Industrial.
Diversification Opportunities for Choil Aluminum and Shinil Industrial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Choil and Shinil is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Choil Aluminum and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and Choil Aluminum 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 Choil Aluminum are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of Choil Aluminum i.e., Choil Aluminum and Shinil Industrial go up and down completely randomly.
Pair Corralation between Choil Aluminum and Shinil Industrial
Assuming the 90 days trading horizon Choil Aluminum is expected to generate 2.61 times more return on investment than Shinil Industrial. However, Choil Aluminum is 2.61 times more volatile than Shinil Industrial Co. It trades about -0.02 of its potential returns per unit of risk. Shinil Industrial Co is currently generating about -0.16 per unit of risk. If you would invest 145,600 in Choil Aluminum on November 7, 2024 and sell it today you would lose (1,000.00) from holding Choil Aluminum or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Choil Aluminum vs. Shinil Industrial Co
Performance |
| Timeline |
| Choil Aluminum |
| Shinil Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Choil Aluminum and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choil Aluminum and Shinil Industrial
The main advantage of trading using opposite Choil Aluminum and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choil Aluminum position performs unexpectedly, Shinil Industrial 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| Choil Aluminum vs. Innowireless Co | Choil Aluminum vs. Atinum Investment Co | Choil Aluminum vs. TS Investment Corp | Choil Aluminum vs. DB Financial Investment |
| Shinil Industrial vs. SM Entertainment Co | Shinil Industrial vs. DC Media Co | Shinil Industrial vs. Lotte Chilsung Beverage | Shinil Industrial vs. TJ media 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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