Correlation Between Sangsangin Investment and Kumho Industrial
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Kumho Industrial 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 Sangsangin Investment and Kumho Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Kumho Industrial Co, you can compare the effects of market volatilities on Sangsangin Investment and Kumho Industrial 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 Sangsangin Investment with a short position of Kumho Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Kumho Industrial.
Diversification Opportunities for Sangsangin Investment and Kumho Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sangsangin and Kumho is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Kumho Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Industrial and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Kumho Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Industrial has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Kumho Industrial go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Kumho Industrial
Assuming the 90 days trading horizon Sangsangin Investment is expected to generate 6.09 times less return on investment than Kumho Industrial. But when comparing it to its historical volatility, Sangsangin Investment Securities is 1.86 times less risky than Kumho Industrial. It trades about 0.03 of its potential returns per unit of risk. Kumho Industrial Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 254,000 in Kumho Industrial Co on January 5, 2025 and sell it today you would earn a total of 8,500 from holding Kumho Industrial Co or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Kumho Industrial Co
Performance |
| Timeline |
| Sangsangin Investment |
| Kumho Industrial |
Sangsangin Investment and Kumho Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Kumho Industrial
The main advantage of trading using opposite Sangsangin Investment and Kumho Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Kumho Industrial 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 Kumho Industrial will offset losses from the drop in Kumho Industrial's long position.| Sangsangin Investment vs. Formetal Co | Sangsangin Investment vs. Kumho Industrial Co | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Lee Ku Industrial |
| Kumho Industrial vs. Dongbang Transport Logistics | Kumho Industrial vs. JYP Entertainment Corp | Kumho Industrial vs. WithTech | Kumho Industrial vs. DC Media Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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