Correlation Between Korea Information and JW Shinyak
Can any of the company-specific risk be diversified away by investing in both Korea Information and JW Shinyak 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 Korea Information and JW Shinyak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Engineering and JW Shinyak, you can compare the effects of market volatilities on Korea Information and JW Shinyak 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 Korea Information with a short position of JW Shinyak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and JW Shinyak.
Diversification Opportunities for Korea Information and JW Shinyak
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Korea and 067290 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Engineering and JW Shinyak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JW Shinyak and Korea Information 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 Korea Information Engineering are associated (or correlated) with JW Shinyak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JW Shinyak has no effect on the direction of Korea Information i.e., Korea Information and JW Shinyak go up and down completely randomly.
Pair Corralation between Korea Information and JW Shinyak
Assuming the 90 days trading horizon Korea Information Engineering is expected to under-perform the JW Shinyak. But the stock apears to be less risky and, when comparing its historical volatility, Korea Information Engineering is 3.42 times less risky than JW Shinyak. The stock trades about -0.13 of its potential returns per unit of risk. The JW Shinyak is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 161,500 in JW Shinyak on September 2, 2024 and sell it today you would lose (13,600) from holding JW Shinyak or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Engineering vs. JW Shinyak
Performance |
| Timeline |
| Korea Information |
| JW Shinyak |
Korea Information and JW Shinyak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and JW Shinyak
The main advantage of trading using opposite Korea Information and JW Shinyak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, JW Shinyak 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 JW Shinyak will offset losses from the drop in JW Shinyak's long position.| Korea Information vs. Dongsin Engineering Construction | Korea Information vs. Doosan Fuel Cell | Korea Information vs. Daishin Balance 1 | Korea Information vs. Total Soft Bank |
| JW Shinyak vs. AptaBio Therapeutics | JW Shinyak vs. KT Hitel | JW Shinyak vs. SillaJen | JW Shinyak vs. Cytogen |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |