Correlation Between Sangsangin Investment and IC Technology
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and IC Technology 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 IC Technology 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 IC Technology Co, you can compare the effects of market volatilities on Sangsangin Investment and IC Technology 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 IC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and IC Technology.
Diversification Opportunities for Sangsangin Investment and IC Technology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sangsangin and 052860 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and IC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IC Technology 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 IC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IC Technology has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and IC Technology go up and down completely randomly.
Pair Corralation between Sangsangin Investment and IC Technology
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the IC Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 2.3 times less risky than IC Technology. The stock trades about -0.14 of its potential returns per unit of risk. The IC Technology Co is currently generating about 0.7 of returns per unit of risk over similar time horizon. If you would invest 168,100 in IC Technology Co on November 28, 2024 and sell it today you would earn a total of 62,400 from holding IC Technology Co or generate 37.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sangsangin Investment Securiti vs. IC Technology Co
Performance |
Timeline |
Sangsangin Investment |
IC Technology |
Sangsangin Investment and IC Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sangsangin Investment and IC Technology
The main advantage of trading using opposite Sangsangin Investment and IC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, IC Technology 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 IC Technology will offset losses from the drop in IC Technology's long position.Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. SK Hynix | Sangsangin Investment vs. HMM Co |
IC Technology vs. Samsung Electronics Co | IC Technology vs. Samsung Electronics Co | IC Technology vs. SK Hynix | IC Technology vs. HMM 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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