Correlation Between Asiana Airlines and ChipsMedia
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and ChipsMedia 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 Asiana Airlines and ChipsMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and ChipsMedia, you can compare the effects of market volatilities on Asiana Airlines and ChipsMedia 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 Asiana Airlines with a short position of ChipsMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and ChipsMedia.
Diversification Opportunities for Asiana Airlines and ChipsMedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asiana and ChipsMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and ChipsMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChipsMedia and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with ChipsMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChipsMedia has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and ChipsMedia go up and down completely randomly.
Pair Corralation between Asiana Airlines and ChipsMedia
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 0.44 times more return on investment than ChipsMedia. However, Asiana Airlines is 2.26 times less risky than ChipsMedia. It trades about 0.0 of its potential returns per unit of risk. ChipsMedia is currently generating about -0.07 per unit of risk. If you would invest 1,110,000 in Asiana Airlines on September 3, 2024 and sell it today you would lose (36,000) from holding Asiana Airlines or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. ChipsMedia
Performance |
| Timeline |
| Asiana Airlines |
| ChipsMedia |
Asiana Airlines and ChipsMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and ChipsMedia
The main advantage of trading using opposite Asiana Airlines and ChipsMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, ChipsMedia 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 ChipsMedia will offset losses from the drop in ChipsMedia's long position.| Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Daewoo SBI SPAC | Asiana Airlines vs. Dream Security co | Asiana Airlines vs. Microfriend |
| ChipsMedia vs. SBI Investment KOREA | ChipsMedia vs. Coloray International Investment | ChipsMedia vs. Korea Investment Holdings | ChipsMedia vs. Polaris Office Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |