Correlation Between Inzi Display and Younglimwon Soft
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Younglimwon Soft 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 Younglimwon Soft 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 Younglimwon Soft Lab, you can compare the effects of market volatilities on Inzi Display and Younglimwon Soft 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 Younglimwon Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Younglimwon Soft.
Diversification Opportunities for Inzi Display and Younglimwon Soft
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inzi and Younglimwon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Younglimwon Soft Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Younglimwon Soft Lab 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 Younglimwon Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Younglimwon Soft Lab has no effect on the direction of Inzi Display i.e., Inzi Display and Younglimwon Soft go up and down completely randomly.
Pair Corralation between Inzi Display and Younglimwon Soft
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 1.53 times more return on investment than Younglimwon Soft. However, Inzi Display is 1.53 times more volatile than Younglimwon Soft Lab. It trades about -0.03 of its potential returns per unit of risk. Younglimwon Soft Lab is currently generating about -0.09 per unit of risk. If you would invest 175,310 in Inzi Display CoLtd on September 4, 2024 and sell it today you would lose (36,510) from holding Inzi Display CoLtd or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Younglimwon Soft Lab
Performance |
| Timeline |
| Inzi Display CoLtd |
| Younglimwon Soft Lab |
Inzi Display and Younglimwon Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Younglimwon Soft
The main advantage of trading using opposite Inzi Display and Younglimwon Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Younglimwon Soft 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 Younglimwon Soft will offset losses from the drop in Younglimwon Soft's long position.| Inzi Display vs. ChipsMedia | Inzi Display vs. DC Media Co | Inzi Display vs. Visang Education | Inzi Display vs. Nasmedia Co |
| Younglimwon Soft vs. GS Retail Co | Younglimwon Soft vs. FOODWELL Co | Younglimwon Soft vs. Inzi Display CoLtd | Younglimwon Soft 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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