Correlation Between KyungIn Electronics and Shinil Electronics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Shinil Electronics 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 KyungIn Electronics and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and Shinil Electronics Co, you can compare the effects of market volatilities on KyungIn Electronics and Shinil Electronics 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 KyungIn Electronics with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Shinil Electronics.

Diversification Opportunities for KyungIn Electronics and Shinil Electronics

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between KyungIn and Shinil is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and KyungIn 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 KyungIn Electronics Co are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Shinil Electronics go up and down completely randomly.

Pair Corralation between KyungIn Electronics and Shinil Electronics

Assuming the 90 days trading horizon KyungIn Electronics Co is expected to under-perform the Shinil Electronics. But the stock apears to be less risky and, when comparing its historical volatility, KyungIn Electronics Co is 1.06 times less risky than Shinil Electronics. The stock trades about -0.05 of its potential returns per unit of risk. The Shinil Electronics Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  145,600  in Shinil Electronics Co on September 3, 2024 and sell it today you would lose (100.00) from holding Shinil Electronics Co or give up 0.07% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

KyungIn Electronics Co  vs.  Shinil Electronics Co

 Performance 
       Timeline  
KyungIn Electronics 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

KyungIn Electronics and Shinil Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KyungIn Electronics and Shinil Electronics

The main advantage of trading using opposite KyungIn Electronics and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Shinil Electronics 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.
The idea behind KyungIn Electronics Co and Shinil Electronics Co 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.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like