Correlation Between LG Display and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both LG Display and Myoung Shin 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 Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display Co and Myoung Shin Industrial, you can compare the effects of market volatilities on LG Display and Myoung Shin 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 Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Myoung Shin.
Diversification Opportunities for LG Display and Myoung Shin
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 034220 and Myoung is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial 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 Co are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of LG Display i.e., LG Display and Myoung Shin go up and down completely randomly.
Pair Corralation between LG Display and Myoung Shin
Assuming the 90 days trading horizon LG Display Co is expected to generate 0.86 times more return on investment than Myoung Shin. However, LG Display Co is 1.17 times less risky than Myoung Shin. It trades about -0.01 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.01 per unit of risk. If you would invest 1,150,738 in LG Display Co on September 12, 2024 and sell it today you would lose (232,738) from holding LG Display Co or give up 20.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| LG Display |
| Myoung Shin Industrial |
LG Display and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Myoung Shin
The main advantage of trading using opposite LG Display and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| LG Display vs. Samsung Electronics Co | LG Display vs. Samsung Electronics Co | LG Display vs. SK Hynix | LG Display vs. POSCO Holdings |
| Myoung Shin vs. LG Display Co | Myoung Shin vs. Phoenix Materials Co | Myoung Shin vs. Mgame Corp | Myoung Shin vs. Kakao Games Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |