Correlation Between Ilji Technology and Industrial Bank
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Industrial Bank 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 Industrial Bank 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 Industrial Bank, you can compare the effects of market volatilities on Ilji Technology and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Industrial Bank.
Diversification Opportunities for Ilji Technology and Industrial Bank
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ilji and Industrial is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Industrial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Ilji Technology i.e., Ilji Technology and Industrial Bank go up and down completely randomly.
Pair Corralation between Ilji Technology and Industrial Bank
Assuming the 90 days trading horizon Ilji Technology Co is expected to under-perform the Industrial Bank. In addition to that, Ilji Technology is 2.03 times more volatile than Industrial Bank. It trades about -0.08 of its total potential returns per unit of risk. Industrial Bank is currently generating about 0.08 per unit of volatility. If you would invest 1,360,000 in Industrial Bank on August 30, 2024 and sell it today you would earn a total of 149,000 from holding Industrial Bank or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Industrial Bank
Performance |
| Timeline |
| Ilji Technology |
| Industrial Bank |
Ilji Technology and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Industrial Bank
The main advantage of trading using opposite Ilji Technology and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Ilji Technology vs. KMH Hitech Co | Ilji Technology vs. GemVaxKAEL CoLtd | Ilji Technology vs. Busan Industrial Co | Ilji Technology vs. Busan Ind |
| Industrial Bank vs. Woori Technology | Industrial Bank vs. Ilji Technology Co | Industrial Bank vs. QUALITAS SEMICONDUCTOR LTD | Industrial Bank vs. People Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |