Correlation Between LG Display and Silla Sg
Can any of the company-specific risk be diversified away by investing in both LG Display and Silla Sg 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 LG Display and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display and Silla Sg Co, you can compare the effects of market volatilities on LG Display and Silla Sg 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 LG Display with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Silla Sg.
Diversification Opportunities for LG Display and Silla Sg
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 034220 and Silla is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding LG Display and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and LG Display 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 LG Display are associated (or correlated) with Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of LG Display i.e., LG Display and Silla Sg go up and down completely randomly.
Pair Corralation between LG Display and Silla Sg
Assuming the 90 days trading horizon LG Display is expected to under-perform the Silla Sg. But the stock apears to be less risky and, when comparing its historical volatility, LG Display is 1.23 times less risky than Silla Sg. The stock trades about -0.01 of its potential returns per unit of risk. The Silla Sg Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 967,000 in Silla Sg Co on September 12, 2024 and sell it today you would lose (157,000) from holding Silla Sg Co or give up 16.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display vs. Silla Sg Co
Performance |
| Timeline |
| LG Display |
| Silla Sg |
LG Display and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Silla Sg
The main advantage of trading using opposite LG Display and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| LG Display vs. Cube Entertainment | LG Display vs. Dreamus Company | LG Display vs. LG Energy Solution | LG Display vs. Dongwon System |
| Silla Sg vs. Korea New Network | Silla Sg vs. ICD Co | Silla Sg vs. DYPNF CoLtd | Silla Sg vs. Solution Advanced Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |