Correlation Between Inzi Display and Hanjoo Light
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Hanjoo Light 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 Hanjoo Light 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 Hanjoo Light Metal, you can compare the effects of market volatilities on Inzi Display and Hanjoo Light 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 Hanjoo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Hanjoo Light.
Diversification Opportunities for Inzi Display and Hanjoo Light
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inzi and Hanjoo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Hanjoo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjoo Light Metal 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 Hanjoo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjoo Light Metal has no effect on the direction of Inzi Display i.e., Inzi Display and Hanjoo Light go up and down completely randomly.
Pair Corralation between Inzi Display and Hanjoo Light
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 0.8 times more return on investment than Hanjoo Light. However, Inzi Display CoLtd is 1.25 times less risky than Hanjoo Light. It trades about 0.0 of its potential returns per unit of risk. Hanjoo Light Metal is currently generating about -0.05 per unit of risk. If you would invest 184,563 in Inzi Display CoLtd on November 27, 2024 and sell it today you would lose (45,263) from holding Inzi Display CoLtd or give up 24.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Hanjoo Light Metal
Performance |
| Timeline |
| Inzi Display CoLtd |
| Hanjoo Light Metal |
Inzi Display and Hanjoo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Hanjoo Light
The main advantage of trading using opposite Inzi Display and Hanjoo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Hanjoo Light 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 Hanjoo Light will offset losses from the drop in Hanjoo Light's long position.| Inzi Display vs. Alton Sports CoLtd | Inzi Display vs. Next Entertainment World | Inzi Display vs. FNC Entertainment Co | Inzi Display vs. Pan Entertainment Co |
| Hanjoo Light vs. InnoTherapy | Hanjoo Light vs. Aprogen Healthcare Games | Hanjoo Light vs. Chorokbaem Healthcare Co | Hanjoo Light vs. INFINITT Healthcare 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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