Correlation Between Iljin Display and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Iljin Display and INFINITT Healthcare 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 INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and INFINITT Healthcare Co, you can compare the effects of market volatilities on Iljin Display and INFINITT Healthcare 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 INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and INFINITT Healthcare.
Diversification Opportunities for Iljin Display and INFINITT Healthcare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Iljin and INFINITT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare 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 INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of Iljin Display i.e., Iljin Display and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Iljin Display and INFINITT Healthcare
Assuming the 90 days trading horizon Iljin Display is expected to generate 3.0 times more return on investment than INFINITT Healthcare. However, Iljin Display is 3.0 times more volatile than INFINITT Healthcare Co. It trades about 0.07 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.15 per unit of risk. If you would invest 87,500 in Iljin Display on October 14, 2024 and sell it today you would earn a total of 2,700 from holding Iljin Display or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Iljin Display |
| INFINITT Healthcare |
Iljin Display and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and INFINITT Healthcare
The main advantage of trading using opposite Iljin Display and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display position performs unexpectedly, INFINITT Healthcare 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 INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's long position.| Iljin Display vs. Puloon Technology | Iljin Display vs. Eagle Veterinary Technology | Iljin Display vs. Youngsin Metal Industrial | Iljin Display vs. Digital Imaging Technology |
| INFINITT Healthcare vs. Echomarketing CoLtd | INFINITT Healthcare vs. Union Materials Corp | INFINITT Healthcare vs. Hyundai Engineering Plastics | INFINITT Healthcare vs. Kakao Games 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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