Correlation Between Insung Information and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Insung Information and Inzi 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 Insung Information and Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Insung Information and Inzi 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 Insung Information with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and Inzi Display.
Diversification Opportunities for Insung Information and Inzi Display
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Insung and Inzi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Insung Information i.e., Insung Information and Inzi Display go up and down completely randomly.
Pair Corralation between Insung Information and Inzi Display
Assuming the 90 days trading horizon Insung Information Co is expected to generate 1.5 times more return on investment than Inzi Display. However, Insung Information is 1.5 times more volatile than Inzi Display CoLtd. It trades about 0.02 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.0 per unit of risk. If you would invest 219,732 in Insung Information Co on October 27, 2024 and sell it today you would lose (31,432) from holding Insung Information Co or give up 14.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| Insung Information |
| Inzi Display CoLtd |
Insung Information and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and Inzi Display
The main advantage of trading using opposite Insung Information and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung Information position performs unexpectedly, Inzi 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Insung Information vs. Samsung Electronics Co | Insung Information vs. Samsung Electronics Co | Insung Information vs. SK Hynix | Insung Information vs. HMM Co |
| Inzi Display vs. SEOWONINTECHCoLtd | Inzi Display vs. Jinro Distillers Co | Inzi Display vs. KMH Hitech Co | Inzi Display vs. Raontech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |