Correlation Between Asiana Airlines and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Shinsegae Information 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 Asiana Airlines and Shinsegae Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Shinsegae Information Communication, you can compare the effects of market volatilities on Asiana Airlines and Shinsegae Information 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 Asiana Airlines with a short position of Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Shinsegae Information.
Diversification Opportunities for Asiana Airlines and Shinsegae Information
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiana and Shinsegae is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Shinsegae Information go up and down completely randomly.
Pair Corralation between Asiana Airlines and Shinsegae Information
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 7.3 times less return on investment than Shinsegae Information. But when comparing it to its historical volatility, Asiana Airlines is 2.29 times less risky than Shinsegae Information. It trades about 0.05 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 917,000 in Shinsegae Information Communication on September 25, 2024 and sell it today you would earn a total of 487,000 from holding Shinsegae Information Communication or generate 53.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asiana Airlines vs. Shinsegae Information Communic
Performance |
Timeline |
Asiana Airlines |
Shinsegae Information |
Asiana Airlines and Shinsegae Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asiana Airlines and Shinsegae Information
The main advantage of trading using opposite Asiana Airlines and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Wonbang Tech Co | Asiana Airlines vs. Busan Industrial Co | Asiana Airlines vs. Busan Ind |
Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Wonbang Tech Co | Shinsegae Information vs. Busan Industrial Co | Shinsegae Information vs. Busan Ind |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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