Correlation Between Inzi Display and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Inzi Display and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Inzi Display and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and BNK Financial.
Diversification Opportunities for Inzi Display and BNK Financial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inzi and BNK is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Inzi Display i.e., Inzi Display and BNK Financial go up and down completely randomly.
Pair Corralation between Inzi Display and BNK Financial
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the BNK Financial. In addition to that, Inzi Display is 1.12 times more volatile than BNK Financial Group. It trades about -0.07 of its total potential returns per unit of risk. BNK Financial Group is currently generating about 0.12 per unit of volatility. If you would invest 715,184 in BNK Financial Group on November 3, 2024 and sell it today you would earn a total of 500,816 from holding BNK Financial Group or generate 70.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. BNK Financial Group
Performance |
| Timeline |
| Inzi Display CoLtd |
| BNK Financial Group |
Inzi Display and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and BNK Financial
The main advantage of trading using opposite Inzi Display and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Inzi Display vs. BGF Retail Co | Inzi Display vs. SS TECH | Inzi Display vs. KyungIn Electronics Co | Inzi Display vs. Narae Nanotech Corp |
| BNK Financial vs. Air Busan Co | BNK Financial vs. SBI Investment KOREA | BNK Financial vs. NH Investment Securities | BNK Financial vs. Woori Technology Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |