Correlation Between Iljin Display and Genic
Can any of the company-specific risk be diversified away by investing in both Iljin Display and Genic 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 Genic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Genic Co, you can compare the effects of market volatilities on Iljin Display and Genic 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 Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Genic.
Diversification Opportunities for Iljin Display and Genic
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iljin and Genic is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic 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 Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of Iljin Display i.e., Iljin Display and Genic go up and down completely randomly.
Pair Corralation between Iljin Display and Genic
Assuming the 90 days trading horizon Iljin Display is expected to generate 11.45 times less return on investment than Genic. But when comparing it to its historical volatility, Iljin Display is 3.9 times less risky than Genic. It trades about 0.08 of its potential returns per unit of risk. Genic Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,687,000 in Genic Co on September 21, 2024 and sell it today you would earn a total of 538,000 from holding Genic Co or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. Genic Co
Performance |
| Timeline |
| Iljin Display |
| Genic |
Iljin Display and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and Genic
The main advantage of trading using opposite Iljin Display and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| Iljin Display vs. Sungmoon Electronics Co | Iljin Display vs. Solution Advanced Technology | Iljin Display vs. Busan Industrial Co | Iljin Display vs. Busan Ind |
| Genic vs. Digital Power Communications | Genic vs. Iljin Display | Genic vs. Inzi Display CoLtd | Genic vs. Display Tech 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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