Correlation Between Shinil Electronics and HYUNDAI FEED

Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and HYUNDAI FEED 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 Shinil Electronics and HYUNDAI FEED into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shinil Electronics Co and HYUNDAI FEED, you can compare the effects of market volatilities on Shinil Electronics and HYUNDAI FEED 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 Shinil Electronics with a short position of HYUNDAI FEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and HYUNDAI FEED.

Diversification Opportunities for Shinil Electronics and HYUNDAI FEED

0.0

Correlation Coefficient

Shinil Electronics  HYUNDAI FEED

Pay attention - limited upside

The 3 months correlation between Shinil and HYUNDAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and HYUNDAI FEED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYUNDAI FEED and Shinil Electronics 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 Shinil Electronics Co are associated (or correlated) with HYUNDAI FEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYUNDAI FEED has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and HYUNDAI FEED go up and down completely randomly.

Pair Corralation between Shinil Electronics and HYUNDAI FEED

If you would invest  99,400  in HYUNDAI FEED on September 16, 2024 and sell it today you would earn a total of  0.00  from holding HYUNDAI FEED or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Shinil Electronics Co  vs.  HYUNDAI FEED

Shinil Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shinil Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shinil Electronics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HYUNDAI FEED

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HYUNDAI FEED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HYUNDAI FEED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shinil Electronics and HYUNDAI FEED

The main advantage of trading using opposite Shinil Electronics and HYUNDAI FEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, HYUNDAI FEED 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 HYUNDAI FEED will offset losses from the drop in HYUNDAI FEED's long position.

The idea behind Shinil Electronics Co and HYUNDAI FEED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.