Correlation Between Sangsangin Investment and Korea Computer
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Korea Computer 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 Korea Computer 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 Korea Computer, you can compare the effects of market volatilities on Sangsangin Investment and Korea Computer 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 Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Korea Computer.
Diversification Opportunities for Sangsangin Investment and Korea Computer
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsangin and Korea is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Korea Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer 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 Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Korea Computer go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Korea Computer
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.41 times more return on investment than Korea Computer. However, Sangsangin Investment Securities is 2.45 times less risky than Korea Computer. It trades about -0.07 of its potential returns per unit of risk. Korea Computer is currently generating about -0.07 per unit of risk. If you would invest 44,600 in Sangsangin Investment Securities on September 1, 2024 and sell it today you would lose (1,000.00) from holding Sangsangin Investment Securities or give up 2.24% 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. Korea Computer
Performance |
| Timeline |
| Sangsangin Investment |
| Korea Computer |
Sangsangin Investment and Korea Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Korea Computer
The main advantage of trading using opposite Sangsangin Investment and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Korea Computer 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 Korea Computer will offset losses from the drop in Korea Computer's long position.| Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group |
| Korea Computer vs. Dongsin Engineering Construction | Korea Computer vs. Doosan Fuel Cell | Korea Computer vs. Daishin Balance 1 | Korea Computer vs. Total Soft Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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