Correlation Between Shinsung Delta and Cosmecca Korea
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and Cosmecca 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 Cosmecca 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 Cosmecca Korea Co, you can compare the effects of market volatilities on Shinsung Delta and Cosmecca 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 Cosmecca Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Cosmecca Korea.
Diversification Opportunities for Shinsung Delta and Cosmecca Korea
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinsung and Cosmecca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and Cosmecca Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmecca Korea 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 Cosmecca Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmecca Korea has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and Cosmecca Korea go up and down completely randomly.
Pair Corralation between Shinsung Delta and Cosmecca Korea
If you would invest 4,470,000 in Shinsung Delta Tech on September 5, 2024 and sell it today you would earn a total of 3,280,000 from holding Shinsung Delta Tech or generate 73.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Shinsung Delta Tech vs. Cosmecca Korea Co
Performance |
| Timeline |
| Shinsung Delta Tech |
| Cosmecca Korea |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinsung Delta and Cosmecca Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Cosmecca Korea
The main advantage of trading using opposite Shinsung Delta and Cosmecca Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, Cosmecca 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 Cosmecca Korea will offset losses from the drop in Cosmecca Korea's long position.| Shinsung Delta vs. LG Display | Shinsung Delta vs. Hyundai Motor | Shinsung Delta vs. Hyundai Motor Co | Shinsung Delta vs. Hyundai Motor Co |
| Cosmecca Korea vs. SS TECH | Cosmecca Korea vs. Intellian Technologies | Cosmecca Korea vs. Eagle Veterinary Technology | Cosmecca Korea vs. CU Tech 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |