Correlation Between ABOV Semiconductor and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and Myoung Shin 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 ABOV Semiconductor and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Myoung Shin Industrial, you can compare the effects of market volatilities on ABOV Semiconductor and Myoung Shin 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 ABOV Semiconductor with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Myoung Shin.
Diversification Opportunities for ABOV Semiconductor and Myoung Shin
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABOV and Myoung is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and Myoung Shin go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Myoung Shin
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to under-perform the Myoung Shin. But the stock apears to be less risky and, when comparing its historical volatility, ABOV Semiconductor Co is 1.52 times less risky than Myoung Shin. The stock trades about -0.3 of its potential returns per unit of risk. The Myoung Shin Industrial is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,339,000 in Myoung Shin Industrial on September 2, 2024 and sell it today you would lose (181,000) from holding Myoung Shin Industrial or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| ABOV Semiconductor |
| Myoung Shin Industrial |
ABOV Semiconductor and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Myoung Shin
The main advantage of trading using opposite ABOV Semiconductor and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| ABOV Semiconductor vs. Dongsin Engineering Construction | ABOV Semiconductor vs. Doosan Fuel Cell | ABOV Semiconductor vs. Daishin Balance 1 | ABOV Semiconductor vs. Total Soft Bank |
| Myoung Shin vs. KB Financial Group | Myoung Shin vs. Dongbang Ship Machinery | Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |