Correlation Between InfoBank and SBI Investment
Can any of the company-specific risk be diversified away by investing in both InfoBank and SBI Investment 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 InfoBank and SBI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfoBank and SBI Investment KOREA, you can compare the effects of market volatilities on InfoBank and SBI Investment 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 InfoBank with a short position of SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfoBank and SBI Investment.
Diversification Opportunities for InfoBank and SBI Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between InfoBank and SBI is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding InfoBank and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA and InfoBank 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 InfoBank are associated (or correlated) with SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of InfoBank i.e., InfoBank and SBI Investment go up and down completely randomly.
Pair Corralation between InfoBank and SBI Investment
Assuming the 90 days trading horizon InfoBank is expected to under-perform the SBI Investment. In addition to that, InfoBank is 1.28 times more volatile than SBI Investment KOREA. It trades about -0.03 of its total potential returns per unit of risk. SBI Investment KOREA is currently generating about -0.02 per unit of volatility. If you would invest 109,100 in SBI Investment KOREA on November 27, 2024 and sell it today you would lose (33,000) from holding SBI Investment KOREA or give up 30.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfoBank vs. SBI Investment KOREA
Performance |
| Timeline |
| InfoBank |
| SBI Investment KOREA |
InfoBank and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfoBank and SBI Investment
The main advantage of trading using opposite InfoBank and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfoBank position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| InfoBank vs. Haesung Industrial Co | InfoBank vs. Hyunwoo Industrial Co | InfoBank vs. Daishin Information Communications | InfoBank vs. Jeong Moon Information |
| SBI Investment vs. NH Investment Securities | SBI Investment vs. Eugene Investment Securities | SBI Investment vs. LB Investment | SBI Investment vs. Sangsangin Investment Securities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |