Correlation Between Shinsung Delta and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Shinsung Delta and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Grand Korea.
Diversification Opportunities for Shinsung Delta and Grand Korea
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinsung and Grand is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and Grand Korea go up and down completely randomly.
Pair Corralation between Shinsung Delta and Grand Korea
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 3.01 times more return on investment than Grand Korea. However, Shinsung Delta is 3.01 times more volatile than Grand Korea Leisure. It trades about 0.26 of its potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.03 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. Grand Korea Leisure
Performance |
| Timeline |
| Shinsung Delta Tech |
| Grand Korea Leisure |
Shinsung Delta and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Grand Korea
The main advantage of trading using opposite Shinsung Delta and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea'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 |
| Grand Korea vs. Lion Chemtech Co | Grand Korea vs. Eagle Veterinary Technology | Grand Korea vs. Inzi Display CoLtd | Grand Korea vs. Nice Information Telecommunication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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