Correlation Between SillaJen and SCI Information
Can any of the company-specific risk be diversified away by investing in both SillaJen and SCI Information 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 SillaJen and SCI Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SillaJen and SCI Information Service, you can compare the effects of market volatilities on SillaJen and SCI Information 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 SillaJen with a short position of SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of SillaJen and SCI Information.
Diversification Opportunities for SillaJen and SCI Information
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SillaJen and SCI is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SillaJen and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service and SillaJen 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 SillaJen are associated (or correlated) with SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of SillaJen i.e., SillaJen and SCI Information go up and down completely randomly.
Pair Corralation between SillaJen and SCI Information
Assuming the 90 days trading horizon SillaJen is expected to generate 1.86 times more return on investment than SCI Information. However, SillaJen is 1.86 times more volatile than SCI Information Service. It trades about 0.09 of its potential returns per unit of risk. SCI Information Service is currently generating about -0.12 per unit of risk. If you would invest 261,000 in SillaJen on September 12, 2024 and sell it today you would earn a total of 17,000 from holding SillaJen or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SillaJen vs. SCI Information Service
Performance |
| Timeline |
| SillaJen |
| SCI Information Service |
SillaJen and SCI Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SillaJen and SCI Information
The main advantage of trading using opposite SillaJen and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SillaJen position performs unexpectedly, SCI Information 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 SCI Information will offset losses from the drop in SCI Information's long position.| SillaJen vs. Kukil Metal Co | SillaJen vs. Korean Air Lines | SillaJen vs. Puloon Technology | SillaJen vs. DONGKUK TED METAL |
| SCI Information vs. KB Financial Group | SCI Information vs. Shinhan Financial Group | SCI Information vs. Hana Financial | SCI Information vs. Woori Financial Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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