Correlation Between SK Bioscience and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both SK Bioscience and Shinsegae Food 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 SK Bioscience and Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and Shinsegae Food, you can compare the effects of market volatilities on SK Bioscience and Shinsegae Food 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 SK Bioscience with a short position of Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and Shinsegae Food.
Diversification Opportunities for SK Bioscience and Shinsegae Food
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 302440 and Shinsegae is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food and SK Bioscience 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 SK Bioscience Co are associated (or correlated) with Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of SK Bioscience i.e., SK Bioscience and Shinsegae Food go up and down completely randomly.
Pair Corralation between SK Bioscience and Shinsegae Food
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the Shinsegae Food. In addition to that, SK Bioscience is 1.27 times more volatile than Shinsegae Food. It trades about -0.07 of its total potential returns per unit of risk. Shinsegae Food is currently generating about 0.01 per unit of volatility. If you would invest 3,190,000 in Shinsegae Food on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Shinsegae Food or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. Shinsegae Food
Performance |
| Timeline |
| SK Bioscience |
| Shinsegae Food |
SK Bioscience and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and Shinsegae Food
The main advantage of trading using opposite SK Bioscience and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience position performs unexpectedly, Shinsegae Food 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 Food will offset losses from the drop in Shinsegae Food's long position.| SK Bioscience vs. Kyeryong Construction Industrial | SK Bioscience vs. SBI Investment KOREA | SK Bioscience vs. Pureun Mutual Savings | SK Bioscience vs. PJ Metal Co |
| Shinsegae Food vs. Chorokbaem Healthcare Co | Shinsegae Food vs. Infinitt Healthcare Co | Shinsegae Food vs. Pureun Mutual Savings | Shinsegae Food vs. INFINITT Healthcare Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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