Correlation Between Vissem Electronics and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Vissem Electronics and Korea Shipbuilding 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 Vissem Electronics and Korea Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vissem Electronics Co and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Vissem Electronics and Korea Shipbuilding 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 Vissem Electronics with a short position of Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vissem Electronics and Korea Shipbuilding.
Diversification Opportunities for Vissem Electronics and Korea Shipbuilding
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vissem and Korea is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Vissem Electronics Co and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding and Vissem Electronics 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 Vissem Electronics Co are associated (or correlated) with Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Vissem Electronics i.e., Vissem Electronics and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Vissem Electronics and Korea Shipbuilding
Assuming the 90 days trading horizon Vissem Electronics Co is expected to under-perform the Korea Shipbuilding. In addition to that, Vissem Electronics is 1.11 times more volatile than Korea Shipbuilding Offshore. It trades about 0.0 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.11 per unit of volatility. If you would invest 7,620,000 in Korea Shipbuilding Offshore on October 14, 2024 and sell it today you would earn a total of 16,380,000 from holding Korea Shipbuilding Offshore or generate 214.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vissem Electronics Co vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Vissem Electronics |
| Korea Shipbuilding |
Vissem Electronics and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vissem Electronics and Korea Shipbuilding
The main advantage of trading using opposite Vissem Electronics and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vissem Electronics position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Vissem Electronics vs. Youngchang Chemical Co | Vissem Electronics vs. INNOX Advanced Materials | Vissem Electronics vs. SH Energy Chemical | Vissem Electronics vs. Youl Chon Chemical |
| Korea Shipbuilding vs. Daewoo Electronic Components | Korea Shipbuilding vs. Vissem Electronics Co | Korea Shipbuilding vs. TK Chemical | Korea Shipbuilding vs. Hansol Chemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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