Correlation Between Innowireless and Samhwa Paint
Can any of the company-specific risk be diversified away by investing in both Innowireless and Samhwa Paint 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 Innowireless and Samhwa Paint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innowireless Co and Samhwa Paint Industrial, you can compare the effects of market volatilities on Innowireless and Samhwa Paint 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 Innowireless with a short position of Samhwa Paint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innowireless and Samhwa Paint.
Diversification Opportunities for Innowireless and Samhwa Paint
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innowireless and Samhwa is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Innowireless Co and Samhwa Paint Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhwa Paint Industrial and Innowireless 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 Innowireless Co are associated (or correlated) with Samhwa Paint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhwa Paint Industrial has no effect on the direction of Innowireless i.e., Innowireless and Samhwa Paint go up and down completely randomly.
Pair Corralation between Innowireless and Samhwa Paint
Assuming the 90 days trading horizon Innowireless Co is expected to under-perform the Samhwa Paint. But the stock apears to be less risky and, when comparing its historical volatility, Innowireless Co is 1.54 times less risky than Samhwa Paint. The stock trades about 0.0 of its potential returns per unit of risk. The Samhwa Paint Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 637,016 in Samhwa Paint Industrial on October 28, 2024 and sell it today you would lose (18,016) from holding Samhwa Paint Industrial or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.89% |
| Values | Daily Returns |
Innowireless Co vs. Samhwa Paint Industrial
Performance |
| Timeline |
| Innowireless |
| Samhwa Paint Industrial |
Innowireless and Samhwa Paint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innowireless and Samhwa Paint
The main advantage of trading using opposite Innowireless and Samhwa Paint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innowireless position performs unexpectedly, Samhwa Paint 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 Samhwa Paint will offset losses from the drop in Samhwa Paint's long position.| Innowireless vs. KB Financial Group | Innowireless vs. Shinhan Financial Group | Innowireless vs. Hana Financial | Innowireless vs. Woori Financial Group |
| Samhwa Paint vs. KB Financial Group | Samhwa Paint vs. Shinhan Financial Group | Samhwa Paint vs. Hana Financial | Samhwa Paint vs. Woori Financial Group |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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