Correlation Between Ilji Technology and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and KyungIn Electronics 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 Ilji Technology and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and KyungIn Electronics Co, you can compare the effects of market volatilities on Ilji Technology and KyungIn Electronics 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 Ilji Technology with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and KyungIn Electronics.
Diversification Opportunities for Ilji Technology and KyungIn Electronics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ilji and KyungIn is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Ilji Technology i.e., Ilji Technology and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Ilji Technology and KyungIn Electronics
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 0.88 times more return on investment than KyungIn Electronics. However, Ilji Technology Co is 1.13 times less risky than KyungIn Electronics. It trades about 0.0 of its potential returns per unit of risk. KyungIn Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 420,500 in Ilji Technology Co on September 4, 2024 and sell it today you would lose (40,000) from holding Ilji Technology Co or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| Ilji Technology |
| KyungIn Electronics |
Ilji Technology and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and KyungIn Electronics
The main advantage of trading using opposite Ilji Technology and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, KyungIn Electronics 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Ilji Technology vs. Korea Real Estate | Ilji Technology vs. Busan Industrial Co | Ilji Technology vs. UNISEM Co | Ilji Technology vs. RPBio Inc |
| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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