Correlation Between Hugel and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both Hugel 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 Hugel and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugel Inc and Shinil Electronics Co, you can compare the effects of market volatilities on Hugel 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 Hugel with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugel and Shinil Electronics.
Diversification Opportunities for Hugel and Shinil Electronics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hugel and Shinil is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hugel Inc and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and Hugel 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 Hugel Inc 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 Hugel i.e., Hugel and Shinil Electronics go up and down completely randomly.
Pair Corralation between Hugel and Shinil Electronics
Assuming the 90 days trading horizon Hugel Inc is expected to generate 2.48 times more return on investment than Shinil Electronics. However, Hugel is 2.48 times more volatile than Shinil Electronics Co. It trades about 0.07 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 12,750,000 in Hugel Inc on November 27, 2024 and sell it today you would earn a total of 18,050,000 from holding Hugel Inc or generate 141.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hugel Inc vs. Shinil Electronics Co
Performance |
| Timeline |
| Hugel Inc |
| Shinil Electronics |
Hugel and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugel and Shinil Electronics
The main advantage of trading using opposite Hugel and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugel 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.| Hugel vs. Sangsin Energy Display | Hugel vs. Hotel Shilla Co | Hugel vs. Nable Communications | Hugel vs. Hyunwoo Industrial Co |
| Shinil Electronics vs. Nh Investment And | Shinil Electronics vs. SBI Investment KOREA | Shinil Electronics vs. Aju IB Investment | Shinil Electronics vs. PLAYWITH |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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