Correlation Between Shinsegae Information and Genolution
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Genolution 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 Genolution 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 Genolution, you can compare the effects of market volatilities on Shinsegae Information and Genolution 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 Genolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Genolution.
Diversification Opportunities for Shinsegae Information and Genolution
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and Genolution is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Genolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genolution 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 Genolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genolution has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Genolution go up and down completely randomly.
Pair Corralation between Shinsegae Information and Genolution
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to generate 0.63 times more return on investment than Genolution. However, Shinsegae Information Communication is 1.59 times less risky than Genolution. It trades about -0.36 of its potential returns per unit of risk. Genolution is currently generating about -0.42 per unit of risk. If you would invest 1,006,000 in Shinsegae Information Communication on September 1, 2024 and sell it today you would lose (117,000) from holding Shinsegae Information Communication or give up 11.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Genolution
Performance |
| Timeline |
| Shinsegae Information |
| Genolution |
Shinsegae Information and Genolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Genolution
The main advantage of trading using opposite Shinsegae Information and Genolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Genolution 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 Genolution will offset losses from the drop in Genolution's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Genolution vs. Duksan Hi Metal | Genolution vs. Shinsegae Information Communication | Genolution vs. Daesung Hi Tech Co | Genolution vs. Kukil Metal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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