Correlation Between Sangsangin Investment and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Jahwa Electron 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 Jahwa Electron 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 Jahwa Electron, you can compare the effects of market volatilities on Sangsangin Investment and Jahwa Electron 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 Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Jahwa Electron.
Diversification Opportunities for Sangsangin Investment and Jahwa Electron
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sangsangin and Jahwa is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron 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 Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Jahwa Electron go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Jahwa Electron
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Jahwa Electron. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 4.72 times less risky than Jahwa Electron. The stock trades about -0.11 of its potential returns per unit of risk. The Jahwa Electron is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,222,000 in Jahwa Electron on December 11, 2024 and sell it today you would earn a total of 89,000 from holding Jahwa Electron or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Jahwa Electron
Performance |
| Timeline |
| Sangsangin Investment |
| Jahwa Electron |
Sangsangin Investment and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Jahwa Electron
The main advantage of trading using opposite Sangsangin Investment and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Sangsangin Investment vs. Koryo Credit Information | Sangsangin Investment vs. Jeju Bank | Sangsangin Investment vs. BNK Financial Group | Sangsangin Investment vs. Samyang Foods Co |
| Jahwa Electron vs. Dong A Steel Technology | Jahwa Electron vs. KG Eco Technology | Jahwa Electron vs. Korea Plasma Technology | Jahwa Electron vs. Kukdong Oil Chemicals |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |