Correlation Between Shinsung Delta and CG Hi
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and CG Hi 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 CG Hi 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 CG Hi Tech, you can compare the effects of market volatilities on Shinsung Delta and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and CG Hi.
Diversification Opportunities for Shinsung Delta and CG Hi
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinsung and 264660 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and CG Hi go up and down completely randomly.
Pair Corralation between Shinsung Delta and CG Hi
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 1.97 times more return on investment than CG Hi. However, Shinsung Delta is 1.97 times more volatile than CG Hi Tech. It trades about 0.16 of its potential returns per unit of risk. CG Hi Tech is currently generating about -0.26 per unit of risk. If you would invest 4,610,000 in Shinsung Delta Tech on September 3, 2024 and sell it today you would earn a total of 1,930,000 from holding Shinsung Delta Tech or generate 41.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsung Delta Tech vs. CG Hi Tech
Performance |
| Timeline |
| Shinsung Delta Tech |
| CG Hi Tech |
Shinsung Delta and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and CG Hi
The main advantage of trading using opposite Shinsung Delta and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| Shinsung Delta vs. INFINITT Healthcare Co | Shinsung Delta vs. Hankook Furniture Co | Shinsung Delta vs. Korea Computer | Shinsung Delta vs. Ssangyong Information Communication |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |