Correlation Between Inzi Display and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Guyoung Technology 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 Guyoung Technology 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 Guyoung Technology Co, you can compare the effects of market volatilities on Inzi Display and Guyoung Technology 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 Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Guyoung Technology.
Diversification Opportunities for Inzi Display and Guyoung Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inzi and Guyoung is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung Technology 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 Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of Inzi Display i.e., Inzi Display and Guyoung Technology go up and down completely randomly.
Pair Corralation between Inzi Display and Guyoung Technology
Assuming the 90 days trading horizon Inzi Display is expected to generate 2.48 times less return on investment than Guyoung Technology. But when comparing it to its historical volatility, Inzi Display CoLtd is 1.41 times less risky than Guyoung Technology. It trades about 0.16 of its potential returns per unit of risk. Guyoung Technology Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 190,278 in Guyoung Technology Co on October 12, 2024 and sell it today you would earn a total of 13,722 from holding Guyoung Technology Co or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Guyoung Technology Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| Guyoung Technology |
Inzi Display and Guyoung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Guyoung Technology
The main advantage of trading using opposite Inzi Display and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Guyoung Technology 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.| Inzi Display vs. System and Application | Inzi Display vs. Insung Information Co | Inzi Display vs. Koryo Credit Information | Inzi Display vs. Jeong Moon Information |
| Guyoung Technology vs. Hwangkum Steel Technology | Guyoung Technology vs. Inzi Display CoLtd | Guyoung Technology vs. PLAYWITH | Guyoung Technology vs. N2Tech 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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