Correlation Between SK Bioscience and JW Shinyak
Can any of the company-specific risk be diversified away by investing in both SK Bioscience and JW Shinyak 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 JW Shinyak 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 JW Shinyak, you can compare the effects of market volatilities on SK Bioscience and JW Shinyak 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 JW Shinyak. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and JW Shinyak.
Diversification Opportunities for SK Bioscience and JW Shinyak
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 302440 and 067290 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and JW Shinyak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JW Shinyak 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 JW Shinyak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JW Shinyak has no effect on the direction of SK Bioscience i.e., SK Bioscience and JW Shinyak go up and down completely randomly.
Pair Corralation between SK Bioscience and JW Shinyak
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the JW Shinyak. But the stock apears to be less risky and, when comparing its historical volatility, SK Bioscience Co is 1.48 times less risky than JW Shinyak. The stock trades about -0.24 of its potential returns per unit of risk. The JW Shinyak is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 160,300 in JW Shinyak on August 24, 2024 and sell it today you would lose (20,100) from holding JW Shinyak or give up 12.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. JW Shinyak
Performance |
| Timeline |
| SK Bioscience |
| JW Shinyak |
SK Bioscience and JW Shinyak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and JW Shinyak
The main advantage of trading using opposite SK Bioscience and JW Shinyak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience position performs unexpectedly, JW Shinyak 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 JW Shinyak will offset losses from the drop in JW Shinyak's long position.| SK Bioscience vs. A Tech Solution Co | SK Bioscience vs. Cots Technology Co | SK Bioscience vs. Korean Reinsurance Co | SK Bioscience vs. Handok Clean Tech |
| JW Shinyak vs. Aprogen Healthcare Games | JW Shinyak vs. Namhwa Industrial Co | JW Shinyak vs. Daiyang Metal Co | JW Shinyak vs. Daelim Industrial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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