Correlation Between Shinsegae Food and MS Autotech
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food and MS Autotech 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 Shinsegae Food and MS Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and MS Autotech CoLtd, you can compare the effects of market volatilities on Shinsegae Food and MS Autotech 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 Shinsegae Food with a short position of MS Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and MS Autotech.
Diversification Opportunities for Shinsegae Food and MS Autotech
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shinsegae and 123040 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food and MS Autotech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MS Autotech CoLtd and Shinsegae Food 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 Shinsegae Food are associated (or correlated) with MS Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MS Autotech CoLtd has no effect on the direction of Shinsegae Food i.e., Shinsegae Food and MS Autotech go up and down completely randomly.
Pair Corralation between Shinsegae Food and MS Autotech
Assuming the 90 days trading horizon Shinsegae Food is expected to generate 0.64 times more return on investment than MS Autotech. However, Shinsegae Food is 1.57 times less risky than MS Autotech. It trades about -0.06 of its potential returns per unit of risk. MS Autotech CoLtd is currently generating about -0.05 per unit of risk. If you would invest 4,826,804 in Shinsegae Food on September 4, 2024 and sell it today you would lose (1,731,804) from holding Shinsegae Food or give up 35.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. MS Autotech CoLtd
Performance |
| Timeline |
| Shinsegae Food |
| MS Autotech CoLtd |
Shinsegae Food and MS Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and MS Autotech
The main advantage of trading using opposite Shinsegae Food and MS Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food position performs unexpectedly, MS Autotech 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 MS Autotech will offset losses from the drop in MS Autotech's long position.| Shinsegae Food vs. Korea Real Estate | Shinsegae Food vs. Busan Industrial Co | Shinsegae Food vs. UNISEM Co | Shinsegae Food vs. RPBio Inc |
| MS Autotech vs. Korea Real Estate | MS Autotech vs. Busan Industrial Co | MS Autotech vs. UNISEM Co | MS Autotech vs. RPBio Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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