Correlation Between Sangsangin Investment and Korean Reinsurance
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Korean Reinsurance 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 Korean Reinsurance 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 Korean Reinsurance Co, you can compare the effects of market volatilities on Sangsangin Investment and Korean Reinsurance 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 Korean Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Korean Reinsurance.
Diversification Opportunities for Sangsangin Investment and Korean Reinsurance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsangin and Korean is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Korean Reinsurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Reinsurance 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 Korean Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Reinsurance has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Korean Reinsurance go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Korean Reinsurance
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Korean Reinsurance. In addition to that, Sangsangin Investment is 1.19 times more volatile than Korean Reinsurance Co. It trades about -0.05 of its total potential returns per unit of risk. Korean Reinsurance Co is currently generating about -0.01 per unit of volatility. If you would invest 824,000 in Korean Reinsurance Co on November 27, 2024 and sell it today you would lose (2,000) from holding Korean Reinsurance Co or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Korean Reinsurance Co
Performance |
| Timeline |
| Sangsangin Investment |
| Korean Reinsurance |
Sangsangin Investment and Korean Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Korean Reinsurance
The main advantage of trading using opposite Sangsangin Investment and Korean Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Korean Reinsurance 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 Korean Reinsurance will offset losses from the drop in Korean Reinsurance's long position.| Sangsangin Investment vs. FNSTech Co | Sangsangin Investment vs. Hanyang Digitech Co | Sangsangin Investment vs. Korean Reinsurance Co | Sangsangin Investment vs. Spolytech Co |
| Korean Reinsurance vs. Worldex Industry Trading | Korean Reinsurance vs. E Investment Development | Korean Reinsurance vs. Nh Investment And | Korean Reinsurance vs. SBI Investment KOREA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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