Correlation Between Sangsangin Investment and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Samyoung Electronics 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 Samyoung Electronics 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Sangsangin Investment and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Samyoung Electronics.
Diversification Opportunities for Sangsangin Investment and Samyoung Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sangsangin and Samyoung is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Samyoung Electronics
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 1.82 times more return on investment than Samyoung Electronics. However, Sangsangin Investment is 1.82 times more volatile than Samyoung Electronics Co. It trades about 0.04 of its potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 42,600 in Sangsangin Investment Securities on October 16, 2024 and sell it today you would earn a total of 300.00 from holding Sangsangin Investment Securities or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Samyoung Electronics Co
Performance |
| Timeline |
| Sangsangin Investment |
| Samyoung Electronics |
Sangsangin Investment and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Samyoung Electronics
The main advantage of trading using opposite Sangsangin Investment and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Sangsangin Investment vs. Hankukpackage Co | Sangsangin Investment vs. Camus Engineering Construction | Sangsangin Investment vs. Dongkuk Structures Construction | Sangsangin Investment vs. Daelim Trading Co |
| Samyoung Electronics vs. Sangsangin Investment Securities | Samyoung Electronics vs. PLAYWITH | Samyoung Electronics vs. Playgram Co | Samyoung Electronics vs. Sangsin Energy Display |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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