Correlation Between Lindeman Asia and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Lindeman Asia and Shinsegae 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 Lindeman Asia and Shinsegae Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindeman Asia Investment and Shinsegae Information Communication, you can compare the effects of market volatilities on Lindeman Asia and Shinsegae 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 Lindeman Asia with a short position of Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindeman Asia and Shinsegae Information.
Diversification Opportunities for Lindeman Asia and Shinsegae Information
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lindeman and Shinsegae is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lindeman Asia Investment and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information and Lindeman Asia 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 Lindeman Asia Investment are associated (or correlated) with Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Lindeman Asia i.e., Lindeman Asia and Shinsegae Information go up and down completely randomly.
Pair Corralation between Lindeman Asia and Shinsegae Information
Assuming the 90 days trading horizon Lindeman Asia Investment is expected to generate 2.43 times more return on investment than Shinsegae Information. However, Lindeman Asia is 2.43 times more volatile than Shinsegae Information Communication. It trades about -0.03 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.07 per unit of risk. If you would invest 662,156 in Lindeman Asia Investment on August 31, 2024 and sell it today you would lose (320,156) from holding Lindeman Asia Investment or give up 48.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindeman Asia Investment vs. Shinsegae Information Communic
Performance |
| Timeline |
| Lindeman Asia Investment |
| Shinsegae Information |
Lindeman Asia and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindeman Asia and Shinsegae Information
The main advantage of trading using opposite Lindeman Asia and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindeman Asia position performs unexpectedly, Shinsegae 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| Lindeman Asia vs. Hanwha InvestmentSecurities Co | Lindeman Asia vs. Solution Advanced Technology | Lindeman Asia vs. Busan Industrial Co | Lindeman Asia vs. Busan Ind |
| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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