Correlation Between GemVaxKAEL CoLtd and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and Shinil Electronics Co, you can compare the effects of market volatilities on GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and Shinil Electronics.
Diversification Opportunities for GemVaxKAEL CoLtd and Shinil Electronics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GemVaxKAEL and Shinil is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and Shinil Electronics go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and Shinil Electronics
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 5.74 times more return on investment than Shinil Electronics. However, GemVaxKAEL CoLtd is 5.74 times more volatile than Shinil Electronics Co. It trades about 0.25 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about 0.08 per unit of risk. If you would invest 1,377,000 in GemVaxKAEL CoLtd on September 1, 2024 and sell it today you would earn a total of 573,000 from holding GemVaxKAEL CoLtd or generate 41.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. Shinil Electronics Co
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| Shinil Electronics |
GemVaxKAEL CoLtd and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and Shinil Electronics
The main advantage of trading using opposite GemVaxKAEL CoLtd and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd 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.| GemVaxKAEL CoLtd vs. Dongsin Engineering Construction | GemVaxKAEL CoLtd vs. Doosan Fuel Cell | GemVaxKAEL CoLtd vs. Daishin Balance 1 | GemVaxKAEL CoLtd vs. Total Soft Bank |
| Shinil Electronics vs. LG Display | Shinil Electronics vs. Hyundai Motor | Shinil Electronics vs. Hyundai Motor Co | Shinil Electronics vs. Hyundai Motor 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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