Correlation Between Shinsegae Food and Cuckoo Electronics
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food and Cuckoo Electronics 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 Cuckoo Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and Cuckoo Electronics Co, you can compare the effects of market volatilities on Shinsegae Food and Cuckoo Electronics 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 Cuckoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Cuckoo Electronics.
Diversification Opportunities for Shinsegae Food and Cuckoo Electronics
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinsegae and Cuckoo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food and Cuckoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Electronics 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 Cuckoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Electronics has no effect on the direction of Shinsegae Food i.e., Shinsegae Food and Cuckoo Electronics go up and down completely randomly.
Pair Corralation between Shinsegae Food and Cuckoo Electronics
Assuming the 90 days trading horizon Shinsegae Food is expected to under-perform the Cuckoo Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Shinsegae Food is 1.15 times less risky than Cuckoo Electronics. The stock trades about -0.04 of its potential returns per unit of risk. The Cuckoo Electronics Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,543,665 in Cuckoo Electronics Co on August 29, 2024 and sell it today you would earn a total of 726,335 from holding Cuckoo Electronics Co or generate 47.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Cuckoo Electronics Co
Performance |
| Timeline |
| Shinsegae Food |
| Cuckoo Electronics |
Shinsegae Food and Cuckoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Cuckoo Electronics
The main advantage of trading using opposite Shinsegae Food and Cuckoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food position performs unexpectedly, Cuckoo Electronics 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 Cuckoo Electronics will offset losses from the drop in Cuckoo Electronics' long position.| Shinsegae Food vs. KMH Hitech Co | Shinsegae Food vs. GemVaxKAEL CoLtd | Shinsegae Food vs. Busan Industrial Co | Shinsegae Food vs. Busan Ind |
| Cuckoo Electronics vs. KMH Hitech Co | Cuckoo Electronics vs. GemVaxKAEL CoLtd | Cuckoo Electronics vs. Busan Industrial Co | Cuckoo Electronics vs. Busan Ind |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |