Correlation Between GemVaxKAEL CoLtd and LX Semicon
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and LX Semicon 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 LX Semicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and LX Semicon Co, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and LX Semicon 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 LX Semicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and LX Semicon.
Diversification Opportunities for GemVaxKAEL CoLtd and LX Semicon
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between GemVaxKAEL and 108320 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and LX Semicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LX Semicon 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 LX Semicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LX Semicon has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and LX Semicon go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and LX Semicon
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to under-perform the LX Semicon. In addition to that, GemVaxKAEL CoLtd is 3.97 times more volatile than LX Semicon Co. It trades about -0.07 of its total potential returns per unit of risk. LX Semicon Co is currently generating about -0.15 per unit of volatility. If you would invest 6,430,000 in LX Semicon Co on August 29, 2024 and sell it today you would lose (680,000) from holding LX Semicon Co or give up 10.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. LX Semicon Co
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| LX Semicon |
GemVaxKAEL CoLtd and LX Semicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and LX Semicon
The main advantage of trading using opposite GemVaxKAEL CoLtd and LX Semicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, LX Semicon 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 LX Semicon will offset losses from the drop in LX Semicon's long position.| GemVaxKAEL CoLtd vs. Daejung Chemicals Metals | GemVaxKAEL CoLtd vs. Stic Investments | GemVaxKAEL CoLtd vs. Miwon Chemicals Co | GemVaxKAEL CoLtd vs. SK Chemicals Co |
| LX Semicon vs. Daou Data Corp | LX Semicon vs. Busan Industrial Co | LX Semicon vs. Busan Ind | LX Semicon vs. Shinhan WTI Futures |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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