Correlation Between Wonik QnC and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both Wonik QnC 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 Wonik QnC and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonik QnC and Shinil Electronics Co, you can compare the effects of market volatilities on Wonik QnC 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 Wonik QnC with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonik QnC and Shinil Electronics.
Diversification Opportunities for Wonik QnC and Shinil Electronics
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wonik and Shinil is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Wonik QnC and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and Wonik QnC 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 Wonik QnC 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 Wonik QnC i.e., Wonik QnC and Shinil Electronics go up and down completely randomly.
Pair Corralation between Wonik QnC and Shinil Electronics
Assuming the 90 days trading horizon Wonik QnC is expected to generate 2.35 times more return on investment than Shinil Electronics. However, Wonik QnC is 2.35 times more volatile than Shinil Electronics Co. It trades about -0.01 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 2,412,175 in Wonik QnC on January 19, 2025 and sell it today you would lose (748,175) from holding Wonik QnC or give up 31.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonik QnC vs. Shinil Electronics Co
Performance |
| Timeline |
| Wonik QnC |
| Shinil Electronics |
Wonik QnC and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonik QnC and Shinil Electronics
The main advantage of trading using opposite Wonik QnC and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonik QnC 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.| Wonik QnC vs. Global Standard Technology | Wonik QnC vs. People Technology | Wonik QnC vs. Hyundai Home Shopping | Wonik QnC vs. Genie Music |
| Shinil Electronics vs. InfoBank | Shinil Electronics vs. Jb Financial | Shinil Electronics vs. Dongbu Insurance Co | Shinil Electronics vs. Samsung Life Insurance |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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