Correlation Between Shinsegae Information and Korea Real
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Korea Real 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 Korea Real 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 Korea Real Estate, you can compare the effects of market volatilities on Shinsegae Information and Korea Real 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 Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Korea Real.
Diversification Opportunities for Shinsegae Information and Korea Real
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and Korea is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Korea Real go up and down completely randomly.
Pair Corralation between Shinsegae Information and Korea Real
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Korea Real. In addition to that, Shinsegae Information is 10.87 times more volatile than Korea Real Estate. It trades about -0.09 of its total potential returns per unit of risk. Korea Real Estate is currently generating about -0.01 per unit of volatility. If you would invest 100,000 in Korea Real Estate on November 30, 2024 and sell it today you would lose (200.00) from holding Korea Real Estate or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Korea Real Estate
Performance |
| Timeline |
| Shinsegae Information |
| Korea Real Estate |
Shinsegae Information and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Korea Real
The main advantage of trading using opposite Shinsegae Information and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Korea Real 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 Korea Real will offset losses from the drop in Korea Real's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Korea Real vs. KMH Hitech Co | Korea Real vs. Coloray International Investment | Korea Real vs. THiRA UTECH LTD | Korea Real vs. MNtech 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| 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 | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |