Correlation Between SillaJen and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both SillaJen and INtRON Biotechnology 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 INtRON Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SillaJen and iNtRON Biotechnology, you can compare the effects of market volatilities on SillaJen and INtRON Biotechnology 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 INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SillaJen and INtRON Biotechnology.
Diversification Opportunities for SillaJen and INtRON Biotechnology
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SillaJen and INtRON is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SillaJen and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology 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 INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of SillaJen i.e., SillaJen and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between SillaJen and INtRON Biotechnology
Assuming the 90 days trading horizon SillaJen is expected to generate 1.78 times more return on investment than INtRON Biotechnology. However, SillaJen is 1.78 times more volatile than iNtRON Biotechnology. It trades about 0.32 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about -0.11 per unit of risk. If you would invest 255,000 in SillaJen on September 2, 2024 and sell it today you would earn a total of 69,500 from holding SillaJen or generate 27.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SillaJen vs. iNtRON Biotechnology
Performance |
| Timeline |
| SillaJen |
| iNtRON Biotechnology |
SillaJen and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SillaJen and INtRON Biotechnology
The main advantage of trading using opposite SillaJen and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SillaJen position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| SillaJen vs. Samsung Electronics Co | SillaJen vs. Samsung Electronics Co | SillaJen vs. LG Energy Solution | SillaJen vs. SK Hynix |
| INtRON Biotechnology vs. AptaBio Therapeutics | INtRON Biotechnology vs. KT Hitel | INtRON Biotechnology vs. SillaJen | INtRON Biotechnology vs. Cytogen |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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