Correlation Between Inzi Display and Sungwoo Techron
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Sungwoo Techron 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 Inzi Display and Sungwoo Techron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Sungwoo Techron CoLtd, you can compare the effects of market volatilities on Inzi Display and Sungwoo Techron 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 Inzi Display with a short position of Sungwoo Techron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Sungwoo Techron.
Diversification Opportunities for Inzi Display and Sungwoo Techron
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inzi and Sungwoo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Sungwoo Techron CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Techron CoLtd and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Sungwoo Techron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Techron CoLtd has no effect on the direction of Inzi Display i.e., Inzi Display and Sungwoo Techron go up and down completely randomly.
Pair Corralation between Inzi Display and Sungwoo Techron
Assuming the 90 days trading horizon Inzi Display is expected to generate 5.62 times less return on investment than Sungwoo Techron. But when comparing it to its historical volatility, Inzi Display CoLtd is 1.31 times less risky than Sungwoo Techron. It trades about 0.03 of its potential returns per unit of risk. Sungwoo Techron CoLtd is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 247,000 in Sungwoo Techron CoLtd on September 25, 2024 and sell it today you would earn a total of 12,000 from holding Sungwoo Techron CoLtd or generate 4.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Inzi Display CoLtd vs. Sungwoo Techron CoLtd
Performance |
Timeline |
Inzi Display CoLtd |
Sungwoo Techron CoLtd |
Inzi Display and Sungwoo Techron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inzi Display and Sungwoo Techron
The main advantage of trading using opposite Inzi Display and Sungwoo Techron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Sungwoo Techron 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 Sungwoo Techron will offset losses from the drop in Sungwoo Techron's long position.Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
Sungwoo Techron vs. Dongsin Engineering Construction | Sungwoo Techron vs. Doosan Fuel Cell | Sungwoo Techron vs. Daishin Balance 1 | Sungwoo Techron vs. Total Soft Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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