Correlation Between S-Fuelcell and Iljin Materials
Can any of the company-specific risk be diversified away by investing in both S-Fuelcell and Iljin Materials 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 S-Fuelcell and Iljin Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S Fuelcell co and Iljin Materials Co, you can compare the effects of market volatilities on S-Fuelcell and Iljin Materials 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 S-Fuelcell with a short position of Iljin Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of S-Fuelcell and Iljin Materials.
Diversification Opportunities for S-Fuelcell and Iljin Materials
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between S-Fuelcell and Iljin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding S Fuelcell co and Iljin Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Materials and S-Fuelcell 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 S Fuelcell co are associated (or correlated) with Iljin Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Materials has no effect on the direction of S-Fuelcell i.e., S-Fuelcell and Iljin Materials go up and down completely randomly.
Pair Corralation between S-Fuelcell and Iljin Materials
Assuming the 90 days trading horizon S Fuelcell co is expected to generate 0.8 times more return on investment than Iljin Materials. However, S Fuelcell co is 1.25 times less risky than Iljin Materials. It trades about -0.08 of its potential returns per unit of risk. Iljin Materials Co is currently generating about -0.06 per unit of risk. If you would invest 1,836,318 in S Fuelcell co on September 12, 2024 and sell it today you would lose (1,015,318) from holding S Fuelcell co or give up 55.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
S Fuelcell co vs. Iljin Materials Co
Performance |
| Timeline |
| S Fuelcell co |
| Iljin Materials |
S-Fuelcell and Iljin Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S-Fuelcell and Iljin Materials
The main advantage of trading using opposite S-Fuelcell and Iljin Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S-Fuelcell position performs unexpectedly, Iljin Materials 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 Iljin Materials will offset losses from the drop in Iljin Materials' long position.| S-Fuelcell vs. Iljin Materials Co | S-Fuelcell vs. National Plastic Co | S-Fuelcell vs. WONIK Materials CoLtd | S-Fuelcell vs. INNOX Advanced Materials |
| Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. LG Energy Solution | Iljin Materials vs. SK Hynix |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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