Correlation Between ChipsMedia and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both ChipsMedia and Asiana Airlines 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 ChipsMedia and Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChipsMedia and Asiana Airlines, you can compare the effects of market volatilities on ChipsMedia and Asiana Airlines 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 ChipsMedia with a short position of Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChipsMedia and Asiana Airlines.
Diversification Opportunities for ChipsMedia and Asiana Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ChipsMedia and Asiana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ChipsMedia and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines and ChipsMedia 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 ChipsMedia are associated (or correlated) with Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of ChipsMedia i.e., ChipsMedia and Asiana Airlines go up and down completely randomly.
Pair Corralation between ChipsMedia and Asiana Airlines
Assuming the 90 days trading horizon ChipsMedia is expected to under-perform the Asiana Airlines. In addition to that, ChipsMedia is 1.55 times more volatile than Asiana Airlines. It trades about -0.04 of its total potential returns per unit of risk. Asiana Airlines is currently generating about 0.17 per unit of volatility. If you would invest 1,000,000 in Asiana Airlines on September 3, 2024 and sell it today you would earn a total of 74,000 from holding Asiana Airlines or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChipsMedia vs. Asiana Airlines
Performance |
| Timeline |
| ChipsMedia |
| Asiana Airlines |
ChipsMedia and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChipsMedia and Asiana Airlines
The main advantage of trading using opposite ChipsMedia and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChipsMedia position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' long position.| ChipsMedia vs. SBI Investment KOREA | ChipsMedia vs. Coloray International Investment | ChipsMedia vs. Korea Investment Holdings | ChipsMedia vs. Polaris Office Corp |
| Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Daewoo SBI SPAC | Asiana Airlines vs. Dream Security co | Asiana Airlines vs. Microfriend |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |