Correlation Between PLAYWITH and Iljin Display
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and Iljin Display 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 PLAYWITH and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and Iljin Display, you can compare the effects of market volatilities on PLAYWITH and Iljin Display 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 PLAYWITH with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and Iljin Display.
Diversification Opportunities for PLAYWITH and Iljin Display
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between PLAYWITH and Iljin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and PLAYWITH 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 PLAYWITH are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of PLAYWITH i.e., PLAYWITH and Iljin Display go up and down completely randomly.
Pair Corralation between PLAYWITH and Iljin Display
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the Iljin Display. In addition to that, PLAYWITH is 1.11 times more volatile than Iljin Display. It trades about -0.03 of its total potential returns per unit of risk. Iljin Display is currently generating about -0.01 per unit of volatility. If you would invest 119,900 in Iljin Display on November 8, 2024 and sell it today you would lose (33,300) from holding Iljin Display or give up 27.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. Iljin Display
Performance |
| Timeline |
| PLAYWITH |
| Iljin Display |
PLAYWITH and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and Iljin Display
The main advantage of trading using opposite PLAYWITH and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| PLAYWITH vs. Mobile Appliance | PLAYWITH vs. SEOWONINTECHCoLtd | PLAYWITH vs. Cuckoo Homesys Co | PLAYWITH vs. Ewon Comfortech Co |
| Iljin Display vs. Mobile Appliance | Iljin Display vs. Automobile Pc | Iljin Display vs. FoodNamoo | Iljin Display vs. Korea Information Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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