Correlation Between Shinsung Delta and Cots Technology
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and Cots Technology 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 Cots Technology 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 Cots Technology Co, you can compare the effects of market volatilities on Shinsung Delta and Cots Technology 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 Cots Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Cots Technology.
Diversification Opportunities for Shinsung Delta and Cots Technology
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinsung and Cots is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and Cots Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cots Technology 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 Cots Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cots Technology has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and Cots Technology go up and down completely randomly.
Pair Corralation between Shinsung Delta and Cots Technology
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 1.98 times more return on investment than Cots Technology. However, Shinsung Delta is 1.98 times more volatile than Cots Technology Co. It trades about 0.42 of its potential returns per unit of risk. Cots Technology Co is currently generating about -0.36 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsung Delta Tech vs. Cots Technology Co
Performance |
| Timeline |
| Shinsung Delta Tech |
| Cots Technology |
Shinsung Delta and Cots Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Cots Technology
The main advantage of trading using opposite Shinsung Delta and Cots Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, Cots Technology 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 Cots Technology will offset losses from the drop in Cots Technology'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 |
| Cots Technology vs. Samsung Electronics Co | Cots Technology vs. Samsung Electronics Co | Cots Technology vs. LG Energy Solution | Cots Technology vs. SK Hynix |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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