Correlation Between Sungwoo Electronics and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Sungwoo Electronics and Inzi 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 Sungwoo Electronics and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungwoo Electronics Co and Inzi Display CoLtd, you can compare the effects of market volatilities on Sungwoo Electronics and Inzi 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 Sungwoo Electronics with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungwoo Electronics and Inzi Display.
Diversification Opportunities for Sungwoo Electronics and Inzi Display
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sungwoo and Inzi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sungwoo Electronics Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Sungwoo 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 Sungwoo Electronics Co are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Sungwoo Electronics i.e., Sungwoo Electronics and Inzi Display go up and down completely randomly.
Pair Corralation between Sungwoo Electronics and Inzi Display
Assuming the 90 days trading horizon Sungwoo Electronics Co is expected to generate 0.8 times more return on investment than Inzi Display. However, Sungwoo Electronics Co is 1.25 times less risky than Inzi Display. It trades about 0.03 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.0 per unit of risk. If you would invest 266,416 in Sungwoo Electronics Co on September 12, 2024 and sell it today you would earn a total of 74,584 from holding Sungwoo Electronics Co or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.63% |
| Values | Daily Returns |
Sungwoo Electronics Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| Sungwoo Electronics |
| Inzi Display CoLtd |
Sungwoo Electronics and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungwoo Electronics and Inzi Display
The main advantage of trading using opposite Sungwoo Electronics and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungwoo Electronics position performs unexpectedly, Inzi 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Sungwoo Electronics vs. Samsung Electronics Co | Sungwoo Electronics vs. KyungIn Electronics Co | Sungwoo Electronics vs. Ssangyong Information Communication | Sungwoo Electronics vs. Anam Electronics Co |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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