Correlation Between Sangsangin Investment and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Sangsangin Investment and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Daewoo SBI.
Diversification Opportunities for Sangsangin Investment and Daewoo SBI
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsangin and Daewoo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Daewoo SBI go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Daewoo SBI
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Daewoo SBI. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 2.11 times less risky than Daewoo SBI. The stock trades about -0.14 of its potential returns per unit of risk. The Daewoo SBI SPAC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 246,000 in Daewoo SBI SPAC on September 13, 2024 and sell it today you would earn a total of 50,500 from holding Daewoo SBI SPAC or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Sangsangin Investment |
| Daewoo SBI SPAC |
Sangsangin Investment and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Daewoo SBI
The main advantage of trading using opposite Sangsangin Investment and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Woori Financial Group |
| Daewoo SBI vs. Korea Information Engineering | Daewoo SBI vs. LG Chemicals | Daewoo SBI vs. SK Chemicals Co | Daewoo SBI vs. Daesung Hi Tech 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |