Correlation Between Shinsegae Information and InnoTherapy
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and InnoTherapy 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 InnoTherapy 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 InnoTherapy, you can compare the effects of market volatilities on Shinsegae Information and InnoTherapy 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 InnoTherapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and InnoTherapy.
Diversification Opportunities for Shinsegae Information and InnoTherapy
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsegae and InnoTherapy is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and InnoTherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InnoTherapy 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 InnoTherapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InnoTherapy has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and InnoTherapy go up and down completely randomly.
Pair Corralation between Shinsegae Information and InnoTherapy
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the InnoTherapy. In addition to that, Shinsegae Information is 1.04 times more volatile than InnoTherapy. It trades about -0.15 of its total potential returns per unit of risk. InnoTherapy is currently generating about -0.12 per unit of volatility. If you would invest 900,000 in InnoTherapy on August 30, 2024 and sell it today you would lose (68,000) from holding InnoTherapy or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. InnoTherapy
Performance |
| Timeline |
| Shinsegae Information |
| InnoTherapy |
Shinsegae Information and InnoTherapy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and InnoTherapy
The main advantage of trading using opposite Shinsegae Information and InnoTherapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, InnoTherapy 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 InnoTherapy will offset losses from the drop in InnoTherapy's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| InnoTherapy vs. AnterogenCoLtd | InnoTherapy vs. Busan Industrial Co | InnoTherapy vs. Busan Ind | InnoTherapy vs. Shinhan WTI Futures |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance |