Correlation Between Sangsangin Investment and Hugel
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Hugel 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 Hugel 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 Hugel Inc, you can compare the effects of market volatilities on Sangsangin Investment and Hugel 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 Hugel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Hugel.
Diversification Opportunities for Sangsangin Investment and Hugel
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsangin and Hugel is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Hugel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugel Inc 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 Hugel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugel Inc has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Hugel go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Hugel
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Hugel. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 1.67 times less risky than Hugel. The stock trades about -0.06 of its potential returns per unit of risk. The Hugel Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12,930,000 in Hugel Inc on September 3, 2024 and sell it today you would earn a total of 13,070,000 from holding Hugel Inc or generate 101.08% 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. Hugel Inc
Performance |
| Timeline |
| Sangsangin Investment |
| Hugel Inc |
Sangsangin Investment and Hugel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Hugel
The main advantage of trading using opposite Sangsangin Investment and Hugel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Hugel 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 Hugel will offset losses from the drop in Hugel's long position.| Sangsangin Investment vs. Dongjin Semichem Co | Sangsangin Investment vs. AhnLab Inc | Sangsangin Investment vs. Posco ICT | Sangsangin Investment vs. CJ ENM |
| Hugel vs. Innowireless Co | Hugel vs. Korea Alcohol Industrial | Hugel vs. YG Entertainment | Hugel vs. Tamul Multimedia 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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