Correlation Between INFINITT Healthcare and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Shinil Electronics 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 INFINITT Healthcare and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFINITT Healthcare Co and Shinil Electronics Co, you can compare the effects of market volatilities on INFINITT Healthcare and Shinil Electronics 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 INFINITT Healthcare with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Shinil Electronics.
Diversification Opportunities for INFINITT Healthcare and Shinil Electronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INFINITT and Shinil is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and INFINITT Healthcare 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 INFINITT Healthcare Co are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Shinil Electronics go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Shinil Electronics
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 1.89 times more return on investment than Shinil Electronics. However, INFINITT Healthcare is 1.89 times more volatile than Shinil Electronics Co. It trades about 0.24 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 414,500 in INFINITT Healthcare Co on October 30, 2024 and sell it today you would earn a total of 18,500 from holding INFINITT Healthcare Co or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Shinil Electronics Co
Performance |
| Timeline |
| INFINITT Healthcare |
| Shinil Electronics |
INFINITT Healthcare and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Shinil Electronics
The main advantage of trading using opposite INFINITT Healthcare and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Shinil Electronics 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.| INFINITT Healthcare vs. PI Advanced Materials | INFINITT Healthcare vs. Miwon Chemicals Co | INFINITT Healthcare vs. LG Chemicals | INFINITT Healthcare vs. EV Advanced Material |
| Shinil Electronics vs. Daewon Chemical Co | Shinil Electronics vs. LG Household Healthcare | Shinil Electronics vs. Sung Bo Chemicals | Shinil Electronics vs. Daejung Chemicals Metals |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |