Correlation Between Ilji Technology and SK Bioscience
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and SK Bioscience 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 SK Bioscience 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 SK Bioscience Co, you can compare the effects of market volatilities on Ilji Technology and SK Bioscience 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 SK Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and SK Bioscience.
Diversification Opportunities for Ilji Technology and SK Bioscience
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ilji and 302440 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and SK Bioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Bioscience 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 SK Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Bioscience has no effect on the direction of Ilji Technology i.e., Ilji Technology and SK Bioscience go up and down completely randomly.
Pair Corralation between Ilji Technology and SK Bioscience
Assuming the 90 days trading horizon Ilji Technology is expected to generate 17.55 times less return on investment than SK Bioscience. But when comparing it to its historical volatility, Ilji Technology Co is 2.53 times less risky than SK Bioscience. It trades about 0.03 of its potential returns per unit of risk. SK Bioscience Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,620,000 in SK Bioscience Co on September 14, 2024 and sell it today you would earn a total of 1,110,000 from holding SK Bioscience Co or generate 24.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. SK Bioscience Co
Performance |
| Timeline |
| Ilji Technology |
| SK Bioscience |
Ilji Technology and SK Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and SK Bioscience
The main advantage of trading using opposite Ilji Technology and SK Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, SK Bioscience 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 SK Bioscience will offset losses from the drop in SK Bioscience's long position.| Ilji Technology vs. Daou Data Corp | Ilji Technology vs. Solution Advanced Technology | Ilji Technology vs. Busan Industrial Co | Ilji Technology vs. Busan Ind |
| SK Bioscience vs. Ilji Technology Co | SK Bioscience vs. Woori Technology Investment | SK Bioscience vs. People Technology | SK Bioscience vs. NH Investment Securities |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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