Correlation Between Innometry and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Innometry and Daewoo SBI 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 Innometry and Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Daewoo SBI SPAC, you can compare the effects of market volatilities on Innometry and Daewoo SBI 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 Innometry with a short position of Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Daewoo SBI.
Diversification Opportunities for Innometry and Daewoo SBI
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innometry and Daewoo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC and Innometry 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 Innometry Co are associated (or correlated) with Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Innometry i.e., Innometry and Daewoo SBI go up and down completely randomly.
Pair Corralation between Innometry and Daewoo SBI
Assuming the 90 days trading horizon Innometry Co is expected to generate 1.46 times more return on investment than Daewoo SBI. However, Innometry is 1.46 times more volatile than Daewoo SBI SPAC. It trades about -0.03 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.06 per unit of risk. If you would invest 1,011,000 in Innometry Co on November 3, 2024 and sell it today you would lose (289,000) from holding Innometry Co or give up 28.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Innometry |
| Daewoo SBI SPAC |
Innometry and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Daewoo SBI
The main advantage of trading using opposite Innometry and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Innometry vs. Hanjoo Light Metal | Innometry vs. Dongbang Transport Logistics | Innometry vs. Hannong Chemicals | Innometry vs. ECSTELECOM Co |
| Daewoo SBI vs. Automobile Pc | Daewoo SBI vs. Daejung Chemicals Metals | Daewoo SBI vs. Formetal Co | Daewoo SBI vs. Korea Information Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |