Correlation Between Inzi Display and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Inzi Display and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Grand Korea.
Diversification Opportunities for Inzi Display and Grand Korea
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inzi and Grand is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Inzi Display i.e., Inzi Display and Grand Korea go up and down completely randomly.
Pair Corralation between Inzi Display and Grand Korea
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the Grand Korea. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 1.29 times less risky than Grand Korea. The stock trades about -0.26 of its potential returns per unit of risk. The Grand Korea Leisure is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,086,000 in Grand Korea Leisure on September 12, 2024 and sell it today you would earn a total of 34,000 from holding Grand Korea Leisure or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Grand Korea Leisure
Performance |
| Timeline |
| Inzi Display CoLtd |
| Grand Korea Leisure |
Inzi Display and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Grand Korea
The main advantage of trading using opposite Inzi Display and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Inzi Display vs. Cube Entertainment | Inzi Display vs. Dreamus Company | Inzi Display vs. LG Energy Solution | Inzi Display vs. Dongwon System |
| Grand Korea vs. Handok Clean Tech | Grand Korea vs. Samsung Life Insurance | Grand Korea vs. Tae Kyung Chemical | Grand Korea vs. Asiana Airlines |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |