Correlation Between Inzi Display and KB No4
Can any of the company-specific risk be diversified away by investing in both Inzi Display and KB No4 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 KB No4 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 KB No4 SPAC, you can compare the effects of market volatilities on Inzi Display and KB No4 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 KB No4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and KB No4.
Diversification Opportunities for Inzi Display and KB No4
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inzi and 205500 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and KB No4 SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB No4 SPAC 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 KB No4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB No4 SPAC has no effect on the direction of Inzi Display i.e., Inzi Display and KB No4 go up and down completely randomly.
Pair Corralation between Inzi Display and KB No4
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 1.07 times more return on investment than KB No4. However, Inzi Display is 1.07 times more volatile than KB No4 SPAC. It trades about 0.01 of its potential returns per unit of risk. KB No4 SPAC is currently generating about -0.03 per unit of risk. If you would invest 164,110 in Inzi Display CoLtd on September 14, 2024 and sell it today you would lose (26,010) from holding Inzi Display CoLtd or give up 15.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Inzi Display CoLtd vs. KB No4 SPAC
Performance |
| Timeline |
| Inzi Display CoLtd |
| KB No4 SPAC |
Inzi Display and KB No4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and KB No4
The main advantage of trading using opposite Inzi Display and KB No4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, KB No4 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 KB No4 will offset losses from the drop in KB No4's long position.| Inzi Display vs. Cube Entertainment | Inzi Display vs. Dreamus Company | Inzi Display vs. LG Energy Solution | Inzi Display vs. Dongwon System |
| KB No4 vs. Seoam Machinery Industry | KB No4 vs. Daou Data Corp | KB No4 vs. SCI Information Service | KB No4 vs. Seohee Construction 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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