Correlation Between Shinsegae Information and SBI Investment
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and SBI Investment 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 SBI Investment 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 SBI Investment KOREA, you can compare the effects of market volatilities on Shinsegae Information and SBI Investment 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 SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and SBI Investment.
Diversification Opportunities for Shinsegae Information and SBI Investment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinsegae and SBI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA 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 SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and SBI Investment go up and down completely randomly.
Pair Corralation between Shinsegae Information and SBI Investment
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the SBI Investment. But the stock apears to be less risky and, when comparing its historical volatility, Shinsegae Information Communication is 1.82 times less risky than SBI Investment. The stock trades about -0.22 of its potential returns per unit of risk. The SBI Investment KOREA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 65,800 in SBI Investment KOREA on August 29, 2024 and sell it today you would earn a total of 6,600 from holding SBI Investment KOREA or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. SBI Investment KOREA
Performance |
| Timeline |
| Shinsegae Information |
| SBI Investment KOREA |
Shinsegae Information and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and SBI Investment
The main advantage of trading using opposite Shinsegae Information and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| SBI Investment vs. Daekyung Machinery Engineering | SBI Investment vs. PlayD Co | SBI Investment vs. Playgram Co | SBI Investment vs. Camus Engineering Construction |
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
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |