Correlation Between Shinsegae Information and LIG ES
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and LIG ES 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 LIG ES 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 LIG ES SPAC, you can compare the effects of market volatilities on Shinsegae Information and LIG ES 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 LIG ES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and LIG ES.
Diversification Opportunities for Shinsegae Information and LIG ES
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and LIG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and LIG ES SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIG ES SPAC 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 LIG ES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIG ES SPAC has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and LIG ES go up and down completely randomly.
Pair Corralation between Shinsegae Information and LIG ES
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to generate 0.43 times more return on investment than LIG ES. However, Shinsegae Information Communication is 2.3 times less risky than LIG ES. It trades about -0.3 of its potential returns per unit of risk. LIG ES SPAC is currently generating about -0.31 per unit of risk. If you would invest 981,000 in Shinsegae Information Communication on September 2, 2024 and sell it today you would lose (92,000) from holding Shinsegae Information Communication or give up 9.38% 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. LIG ES SPAC
Performance |
| Timeline |
| Shinsegae Information |
| LIG ES SPAC |
Shinsegae Information and LIG ES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and LIG ES
The main advantage of trading using opposite Shinsegae Information and LIG ES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, LIG ES 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 LIG ES will offset losses from the drop in LIG ES's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| LIG ES vs. Nam Hwa Construction | LIG ES vs. Shinsegae Information Communication | LIG ES vs. HJ ShipBuilding Construction | LIG ES vs. Woorim Machinery 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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