Correlation Between Coloray International and Silla Sg
Can any of the company-specific risk be diversified away by investing in both Coloray International and Silla Sg 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 Coloray International and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloray International Investment and Silla Sg Co, you can compare the effects of market volatilities on Coloray International and Silla Sg 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 Coloray International with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloray International and Silla Sg.
Diversification Opportunities for Coloray International and Silla Sg
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coloray and Silla is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Coloray International Investme and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and Coloray International 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 Coloray International Investment are associated (or correlated) with Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of Coloray International i.e., Coloray International and Silla Sg go up and down completely randomly.
Pair Corralation between Coloray International and Silla Sg
Assuming the 90 days trading horizon Coloray International Investment is expected to under-perform the Silla Sg. But the stock apears to be less risky and, when comparing its historical volatility, Coloray International Investment is 1.09 times less risky than Silla Sg. The stock trades about -0.07 of its potential returns per unit of risk. The Silla Sg Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 778,000 in Silla Sg Co on September 4, 2024 and sell it today you would lose (185,000) from holding Silla Sg Co or give up 23.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloray International Investme vs. Silla Sg Co
Performance |
| Timeline |
| Coloray International |
| Silla Sg |
Coloray International and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloray International and Silla Sg
The main advantage of trading using opposite Coloray International and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloray International position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| Coloray International vs. LG Chem | Coloray International vs. DukSan Neolux CoLtd | Coloray International vs. Hyosung Chemical Corp | Coloray International vs. LIG ES SPAC |
| Silla Sg vs. LG Display | Silla Sg vs. Hyundai Motor | Silla Sg vs. Hyundai Motor Co | Silla Sg vs. Hyundai Motor 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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