Correlation Between Iljin Display and Playgram
Can any of the company-specific risk be diversified away by investing in both Iljin Display and Playgram 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 Iljin Display and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Playgram Co, you can compare the effects of market volatilities on Iljin Display and Playgram 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 Iljin Display with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Playgram.
Diversification Opportunities for Iljin Display and Playgram
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Iljin and Playgram is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Iljin Display 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 Iljin Display are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Iljin Display i.e., Iljin Display and Playgram go up and down completely randomly.
Pair Corralation between Iljin Display and Playgram
Assuming the 90 days trading horizon Iljin Display is expected to generate 0.78 times more return on investment than Playgram. However, Iljin Display is 1.29 times less risky than Playgram. It trades about 0.17 of its potential returns per unit of risk. Playgram Co is currently generating about -0.03 per unit of risk. If you would invest 83,000 in Iljin Display on October 29, 2024 and sell it today you would earn a total of 5,500 from holding Iljin Display or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. Playgram Co
Performance |
| Timeline |
| Iljin Display |
| Playgram |
Iljin Display and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and Playgram
The main advantage of trading using opposite Iljin Display and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Iljin Display vs. Haitai Confectionery Foods | Iljin Display vs. Samyang Foods Co | Iljin Display vs. Korean Reinsurance Co | Iljin Display vs. Koryo Credit Information |
| Playgram vs. Samick Musical Instruments | Playgram vs. E Investment Development | Playgram vs. Heungkuk Metaltech CoLtd | Playgram vs. Dongil Metal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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