Correlation Between Orbitech and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Orbitech and Shinsegae Food 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 Orbitech and Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Shinsegae Food, you can compare the effects of market volatilities on Orbitech and Shinsegae Food 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 Orbitech with a short position of Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Shinsegae Food.
Diversification Opportunities for Orbitech and Shinsegae Food
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orbitech and Shinsegae is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food and Orbitech 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 Orbitech Co are associated (or correlated) with Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Orbitech i.e., Orbitech and Shinsegae Food go up and down completely randomly.
Pair Corralation between Orbitech and Shinsegae Food
Assuming the 90 days trading horizon Orbitech Co is expected to generate 1.69 times more return on investment than Shinsegae Food. However, Orbitech is 1.69 times more volatile than Shinsegae Food. It trades about 0.1 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.28 per unit of risk. If you would invest 221,000 in Orbitech Co on September 2, 2024 and sell it today you would earn a total of 10,500 from holding Orbitech Co or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. Shinsegae Food
Performance |
| Timeline |
| Orbitech |
| Shinsegae Food |
Orbitech and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Shinsegae Food
The main advantage of trading using opposite Orbitech and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Orbitech vs. Korea New Network | Orbitech vs. ICD Co | Orbitech vs. DYPNF CoLtd | Orbitech vs. Busan Industrial Co |
| Shinsegae Food vs. Eagle Veterinary Technology | Shinsegae Food vs. AurosTechnology | Shinsegae Food vs. Dongbang Transport Logistics | Shinsegae Food vs. Orbitech 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |