Correlation Between LEENO Industrial and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both LEENO Industrial and Myoung Shin 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 LEENO Industrial and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LEENO Industrial and Myoung Shin Industrial, you can compare the effects of market volatilities on LEENO Industrial and Myoung Shin 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 LEENO Industrial with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEENO Industrial and Myoung Shin.
Diversification Opportunities for LEENO Industrial and Myoung Shin
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LEENO and Myoung is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding LEENO Industrial and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and LEENO Industrial 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 LEENO Industrial are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of LEENO Industrial i.e., LEENO Industrial and Myoung Shin go up and down completely randomly.
Pair Corralation between LEENO Industrial and Myoung Shin
Assuming the 90 days trading horizon LEENO Industrial is expected to generate 1.11 times more return on investment than Myoung Shin. However, LEENO Industrial is 1.11 times more volatile than Myoung Shin Industrial. It trades about 0.03 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.01 per unit of risk. If you would invest 15,320,200 in LEENO Industrial on September 19, 2024 and sell it today you would earn a total of 4,099,800 from holding LEENO Industrial or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
LEENO Industrial vs. Myoung Shin Industrial
Performance |
| Timeline |
| LEENO Industrial |
| Myoung Shin Industrial |
LEENO Industrial and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LEENO Industrial and Myoung Shin
The main advantage of trading using opposite LEENO Industrial and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEENO Industrial position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| LEENO Industrial vs. Cube Entertainment | LEENO Industrial vs. Dreamus Company | LEENO Industrial vs. LG Energy Solution | LEENO Industrial vs. Dongwon System |
| Myoung Shin vs. i Components Co | Myoung Shin vs. Naver | Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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