Correlation Between Access Bio and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Access Bio and Iljin Display 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 Access Bio and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and Iljin Display, you can compare the effects of market volatilities on Access Bio and Iljin Display 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 Access Bio with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and Iljin Display.
Diversification Opportunities for Access Bio and Iljin Display
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Access and Iljin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Access Bio 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 Access Bio are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Access Bio i.e., Access Bio and Iljin Display go up and down completely randomly.
Pair Corralation between Access Bio and Iljin Display
Assuming the 90 days trading horizon Access Bio is expected to generate 2.26 times more return on investment than Iljin Display. However, Access Bio is 2.26 times more volatile than Iljin Display. It trades about 0.06 of its potential returns per unit of risk. Iljin Display is currently generating about 0.1 per unit of risk. If you would invest 519,000 in Access Bio on November 30, 2024 and sell it today you would earn a total of 33,000 from holding Access Bio or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. Iljin Display
Performance |
| Timeline |
| Access Bio |
| Iljin Display |
Access Bio and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and Iljin Display
The main advantage of trading using opposite Access Bio and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, Iljin Display 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 Display will offset losses from the drop in Iljin Display's long position.| Access Bio vs. KakaoBank Corp | Access Bio vs. Alton Sports CoLtd | Access Bio vs. Hana Financial | Access Bio vs. DB Financial Investment |
| Iljin Display vs. CKH Food Health | Iljin Display vs. BGF Retail Co | Iljin Display vs. Korea Shipbuilding Offshore | Iljin Display vs. Samwha Electronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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