Correlation Between Shinsegae Information and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Shinil 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 Information and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Shinil Electronics Co, you can compare the effects of market volatilities on Shinsegae Information and Shinil 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 Information with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Shinil Electronics.
Diversification Opportunities for Shinsegae Information and Shinil Electronics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinsegae and Shinil is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and Shinsegae 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 Shinsegae Information Communication are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Shinil Electronics go up and down completely randomly.
Pair Corralation between Shinsegae Information and Shinil Electronics
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Shinil Electronics. In addition to that, Shinsegae Information is 1.47 times more volatile than Shinil Electronics Co. It trades about -0.04 of its total potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.04 per unit of volatility. If you would invest 188,940 in Shinil Electronics Co on August 28, 2024 and sell it today you would lose (42,940) from holding Shinil Electronics Co or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Shinil Electronics Co
Performance |
| Timeline |
| Shinsegae Information |
| Shinil Electronics |
Shinsegae Information and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Shinil Electronics
The main advantage of trading using opposite Shinsegae Information and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Shinil 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Shinil Electronics vs. Busan Industrial Co | Shinil Electronics vs. Busan Ind | Shinil Electronics vs. Mirae Asset Daewoo | Shinil Electronics vs. UNISEM 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |