Correlation Between Shinsung Delta and Playgram
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and Playgram 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 Shinsung Delta and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsung Delta Tech and Playgram Co, you can compare the effects of market volatilities on Shinsung Delta and Playgram 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 Shinsung Delta with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Playgram.
Diversification Opportunities for Shinsung Delta and Playgram
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsung and Playgram is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Shinsung Delta 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 Shinsung Delta Tech are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and Playgram go up and down completely randomly.
Pair Corralation between Shinsung Delta and Playgram
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 1.37 times more return on investment than Playgram. However, Shinsung Delta is 1.37 times more volatile than Playgram Co. It trades about 0.26 of its potential returns per unit of risk. Playgram Co is currently generating about 0.06 per unit of risk. If you would invest 4,890,000 in Shinsung Delta Tech on September 13, 2024 and sell it today you would earn a total of 4,180,000 from holding Shinsung Delta Tech or generate 85.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsung Delta Tech vs. Playgram Co
Performance |
| Timeline |
| Shinsung Delta Tech |
| Playgram |
Shinsung Delta and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Playgram
The main advantage of trading using opposite Shinsung Delta and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Shinsung Delta vs. Korea New Network | Shinsung Delta vs. Solution Advanced Technology | Shinsung Delta vs. Busan Industrial Co | Shinsung Delta vs. Busan Ind |
| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Hanwha Solutions | Playgram vs. Lotte Chemical Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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