Correlation Between Inzi Display and GS Retail
Can any of the company-specific risk be diversified away by investing in both Inzi Display and GS Retail 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 GS Retail 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 GS Retail Co, you can compare the effects of market volatilities on Inzi Display and GS Retail 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 GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and GS Retail.
Diversification Opportunities for Inzi Display and GS Retail
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inzi and 007070 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail 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 GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of Inzi Display i.e., Inzi Display and GS Retail go up and down completely randomly.
Pair Corralation between Inzi Display and GS Retail
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 1.76 times more return on investment than GS Retail. However, Inzi Display is 1.76 times more volatile than GS Retail Co. It trades about 0.0 of its potential returns per unit of risk. GS Retail Co is currently generating about -0.04 per unit of risk. If you would invest 174,044 in Inzi Display CoLtd on October 13, 2024 and sell it today you would lose (31,544) from holding Inzi Display CoLtd or give up 18.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.47% |
| Values | Daily Returns |
Inzi Display CoLtd vs. GS Retail Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| GS Retail |
Inzi Display and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and GS Retail
The main advantage of trading using opposite Inzi Display and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| Inzi Display vs. KMH Hitech Co | Inzi Display vs. GemVaxKAEL CoLtd | Inzi Display vs. Bosung Power Technology | Inzi Display vs. Busan Industrial Co |
| GS Retail vs. LG Household Healthcare | GS Retail vs. Sempio Foods Co | GS Retail vs. Inzi Display CoLtd | GS Retail vs. CKH Food Health |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |