Correlation Between Sangsangin Investment and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Kisan Telecom 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 Kisan Telecom 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 Kisan Telecom Co, you can compare the effects of market volatilities on Sangsangin Investment and Kisan Telecom 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 Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Kisan Telecom.
Diversification Opportunities for Sangsangin Investment and Kisan Telecom
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsangin and Kisan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom 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 Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Kisan Telecom go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Kisan Telecom
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Kisan Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 1.31 times less risky than Kisan Telecom. The stock trades about -0.06 of its potential returns per unit of risk. The Kisan Telecom Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 312,000 in Kisan Telecom Co on October 13, 2024 and sell it today you would lose (134,000) from holding Kisan Telecom Co or give up 42.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Kisan Telecom Co
Performance |
| Timeline |
| Sangsangin Investment |
| Kisan Telecom |
Sangsangin Investment and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Kisan Telecom
The main advantage of trading using opposite Sangsangin Investment and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Sangsangin Investment vs. Hyundai Home Shopping | Sangsangin Investment vs. Homecast CoLtd | Sangsangin Investment vs. Samsung Life Insurance | Sangsangin Investment vs. Hwangkum Steel Technology |
| Kisan Telecom vs. Coloray International Investment | Kisan Telecom vs. Sangsangin Investment Securities | Kisan Telecom vs. Dong A Steel Technology | Kisan Telecom vs. EBEST Investment Securities |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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