Correlation Between JW Shinyak and Iljin Display
Can any of the company-specific risk be diversified away by investing in both JW Shinyak and Iljin Display 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 JW Shinyak and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JW Shinyak and Iljin Display, you can compare the effects of market volatilities on JW Shinyak and Iljin Display 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 JW Shinyak with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of JW Shinyak and Iljin Display.
Diversification Opportunities for JW Shinyak and Iljin Display
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 067290 and Iljin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding JW Shinyak and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and JW Shinyak 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 JW Shinyak are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of JW Shinyak i.e., JW Shinyak and Iljin Display go up and down completely randomly.
Pair Corralation between JW Shinyak and Iljin Display
Assuming the 90 days trading horizon JW Shinyak is expected to generate 1.83 times more return on investment than Iljin Display. However, JW Shinyak is 1.83 times more volatile than Iljin Display. It trades about -0.03 of its potential returns per unit of risk. Iljin Display is currently generating about -0.15 per unit of risk. If you would invest 173,800 in JW Shinyak on August 27, 2024 and sell it today you would lose (33,600) from holding JW Shinyak or give up 19.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JW Shinyak vs. Iljin Display
Performance |
| Timeline |
| JW Shinyak |
| Iljin Display |
JW Shinyak and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JW Shinyak and Iljin Display
The main advantage of trading using opposite JW Shinyak and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JW Shinyak position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| JW Shinyak vs. Chorokbaem Healthcare Co | JW Shinyak vs. SK Chemicals Co | JW Shinyak vs. Sangsin Energy Display | JW Shinyak vs. Iljin Display |
| Iljin Display vs. Daeduck Electronics Co | Iljin Display vs. Samsung Life Insurance | Iljin Display vs. Sungwoo Electronics Co | Iljin Display vs. Derkwoo Electronics Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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