Correlation Between Cuckoo Electronics and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and Shinsegae Food 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 Cuckoo Electronics and Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and Shinsegae Food, you can compare the effects of market volatilities on Cuckoo Electronics and Shinsegae Food 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 Cuckoo Electronics with a short position of Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and Shinsegae Food.
Diversification Opportunities for Cuckoo Electronics and Shinsegae Food
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cuckoo and Shinsegae is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food and Cuckoo Electronics 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 Cuckoo Electronics Co are associated (or correlated) with Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and Shinsegae Food go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and Shinsegae Food
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to generate 0.72 times more return on investment than Shinsegae Food. However, Cuckoo Electronics Co is 1.38 times less risky than Shinsegae Food. It trades about 0.09 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.03 per unit of risk. If you would invest 1,655,000 in Cuckoo Electronics Co on November 7, 2024 and sell it today you would earn a total of 610,000 from holding Cuckoo Electronics Co or generate 36.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. Shinsegae Food
Performance |
| Timeline |
| Cuckoo Electronics |
| Shinsegae Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cuckoo Electronics and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and Shinsegae Food
The main advantage of trading using opposite Cuckoo Electronics and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Cuckoo Electronics vs. Kaonmedia Co | Cuckoo Electronics vs. Hyundai Home Shopping | Cuckoo Electronics vs. AeroSpace Technology of | Cuckoo Electronics vs. Polaris Office Corp |
| Shinsegae Food vs. Puloon Technology | Shinsegae Food vs. Digital Imaging Technology | Shinsegae Food vs. NewFlex Technology Co | Shinsegae Food vs. Samsung Life Insurance |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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