Correlation Between Inzi Display and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Samsung Fire 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 Inzi Display and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Samsung Fire Marine, you can compare the effects of market volatilities on Inzi Display and Samsung Fire 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 Inzi Display with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Samsung Fire.
Diversification Opportunities for Inzi Display and Samsung Fire
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inzi and Samsung is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Inzi Display i.e., Inzi Display and Samsung Fire go up and down completely randomly.
Pair Corralation between Inzi Display and Samsung Fire
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 0.81 times more return on investment than Samsung Fire. However, Inzi Display CoLtd is 1.24 times less risky than Samsung Fire. It trades about -0.12 of its potential returns per unit of risk. Samsung Fire Marine is currently generating about -0.16 per unit of risk. If you would invest 140,100 in Inzi Display CoLtd on October 24, 2024 and sell it today you would lose (4,000) from holding Inzi Display CoLtd or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Samsung Fire Marine
Performance |
| Timeline |
| Inzi Display CoLtd |
| Samsung Fire Marine |
Inzi Display and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Samsung Fire
The main advantage of trading using opposite Inzi Display and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.| Inzi Display vs. Daishin Balance No8 | Inzi Display vs. NAU IB Capital | Inzi Display vs. Daishin Balance No | Inzi Display vs. Daesung Private Equity |
| Samsung Fire vs. AeroSpace Technology of | Samsung Fire vs. Inzi Display CoLtd | Samsung Fire vs. Guyoung Technology Co | Samsung Fire vs. Digital Imaging Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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