Correlation Between Insun Environment and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Insun Environment and Korea Shipbuilding 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 Insun Environment and Korea Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insun Environment New and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Insun Environment and Korea Shipbuilding 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 Insun Environment with a short position of Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insun Environment and Korea Shipbuilding.
Diversification Opportunities for Insun Environment and Korea Shipbuilding
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Insun and Korea is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Insun Environment New and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding and Insun Environment 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 Insun Environment New are associated (or correlated) with Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Insun Environment i.e., Insun Environment and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Insun Environment and Korea Shipbuilding
Assuming the 90 days trading horizon Insun Environment is expected to generate 1.1 times less return on investment than Korea Shipbuilding. But when comparing it to its historical volatility, Insun Environment New is 1.53 times less risky than Korea Shipbuilding. It trades about 0.45 of its potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 19,600,000 in Korea Shipbuilding Offshore on October 11, 2024 and sell it today you would earn a total of 3,900,000 from holding Korea Shipbuilding Offshore or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insun Environment New vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Insun Environment New |
| Korea Shipbuilding |
Insun Environment and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insun Environment and Korea Shipbuilding
The main advantage of trading using opposite Insun Environment and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insun Environment position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Insun Environment vs. SK Chemicals Co | Insun Environment vs. SeAH Besteel Corp | Insun Environment vs. Hankukpackage Co | Insun Environment vs. Hankuk Steel Wire |
| Korea Shipbuilding vs. SEOJEON ELECTRIC MACHINERY | Korea Shipbuilding vs. Mirai Semiconductors Co | Korea Shipbuilding vs. Kyeryong Construction Industrial | Korea Shipbuilding vs. Hansol Homedeco 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |