Correlation Between Kolon Life and Sinil Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Kolon Life and Sinil Pharmaceutical 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 Kolon Life and Sinil Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kolon Life Science and Sinil Pharmaceutical Co, you can compare the effects of market volatilities on Kolon Life and Sinil Pharmaceutical 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 Kolon Life with a short position of Sinil Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kolon Life and Sinil Pharmaceutical.
Diversification Opportunities for Kolon Life and Sinil Pharmaceutical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kolon and Sinil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kolon Life Science and Sinil Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinil Pharmaceutical and Kolon Life 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 Kolon Life Science are associated (or correlated) with Sinil Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinil Pharmaceutical has no effect on the direction of Kolon Life i.e., Kolon Life and Sinil Pharmaceutical go up and down completely randomly.
Pair Corralation between Kolon Life and Sinil Pharmaceutical
If you would invest (100.00) in Sinil Pharmaceutical Co on November 10, 2024 and sell it today you would earn a total of 100.00 from holding Sinil Pharmaceutical Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kolon Life Science vs. Sinil Pharmaceutical Co
Performance |
| Timeline |
| Kolon Life Science |
| Sinil Pharmaceutical |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kolon Life and Sinil Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kolon Life and Sinil Pharmaceutical
The main advantage of trading using opposite Kolon Life and Sinil Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kolon Life position performs unexpectedly, Sinil Pharmaceutical 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 Sinil Pharmaceutical will offset losses from the drop in Sinil Pharmaceutical's long position.| Kolon Life vs. Korea Alcohol Industrial | Kolon Life vs. DONGKUK TED METAL | Kolon Life vs. Air Busan Co | Kolon Life vs. Heungkuk Metaltech CoLtd |
| Sinil Pharmaceutical vs. JYP Entertainment Corp | Sinil Pharmaceutical vs. Alton Sports CoLtd | Sinil Pharmaceutical vs. Global Standard Technology | Sinil Pharmaceutical vs. AeroSpace Technology of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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