Correlation Between Myoung Shin and E Mart

Can any of the company-specific risk be diversified away by investing in both Myoung Shin and E Mart 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 Myoung Shin and E Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Myoung Shin Industrial and E Mart, you can compare the effects of market volatilities on Myoung Shin and E Mart 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 Myoung Shin with a short position of E Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and E Mart.

Diversification Opportunities for Myoung Shin and E Mart

0.0

Correlation Coefficient

Myoung Shin  E Mart

Pay attention - limited upside

The 3 months correlation between Myoung and 139480 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial and E Mart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Mart and Myoung Shin 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 Myoung Shin Industrial are associated (or correlated) with E Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Mart has no effect on the direction of Myoung Shin i.e., Myoung Shin and E Mart go up and down completely randomly.

Pair Corralation between Myoung Shin and E Mart

If you would invest  1,023,000  in Myoung Shin Industrial on October 9, 2024 and sell it today you would earn a total of  51,000  from holding Myoung Shin Industrial or generate 4.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Myoung Shin Industrial  vs.  E Mart

Myoung Shin Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Myoung Shin Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

E Mart

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Myoung Shin and E Mart

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

The idea behind Myoung Shin Industrial and E Mart 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 Commodity Directory module to find actively traded commodities issued by global exchanges.