Correlation Between Insung Information and SCI Information
Can any of the company-specific risk be diversified away by investing in both Insung Information and SCI Information 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 Insung Information and SCI Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insung Information Co and SCI Information Service, you can compare the effects of market volatilities on Insung Information and SCI Information 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 Insung Information with a short position of SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and SCI Information.
Diversification Opportunities for Insung Information and SCI Information
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Insung and SCI is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information Co and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service and Insung Information 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 Insung Information Co are associated (or correlated) with SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of Insung Information i.e., Insung Information and SCI Information go up and down completely randomly.
Pair Corralation between Insung Information and SCI Information
Assuming the 90 days trading horizon Insung Information Co is expected to generate 1.54 times more return on investment than SCI Information. However, Insung Information is 1.54 times more volatile than SCI Information Service. It trades about 0.17 of its potential returns per unit of risk. SCI Information Service is currently generating about -0.18 per unit of risk. If you would invest 174,800 in Insung Information Co on October 28, 2024 and sell it today you would earn a total of 13,500 from holding Insung Information Co or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. SCI Information Service
Performance |
| Timeline |
| Insung Information |
| SCI Information Service |
Insung Information and SCI Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and SCI Information
The main advantage of trading using opposite Insung Information and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung Information position performs unexpectedly, SCI Information 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 SCI Information will offset losses from the drop in SCI Information's long position.| Insung Information vs. Namhae Chemical | Insung Information vs. N2Tech Co | Insung Information vs. Wireless Power Amplifier | Insung Information vs. iNtRON Biotechnology |
| SCI Information vs. Korea Electronic Certification | SCI Information vs. Shinil Electronics Co | SCI Information vs. Sungmoon Electronics Co | SCI Information vs. Samji Electronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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