Correlation Between Sangsangin Investment and DSC Investment
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and DSC Investment 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 DSC Investment 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 DSC Investment, you can compare the effects of market volatilities on Sangsangin Investment and DSC Investment 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 DSC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and DSC Investment.
Diversification Opportunities for Sangsangin Investment and DSC Investment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsangin and DSC is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and DSC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSC Investment 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 DSC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSC Investment has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and DSC Investment go up and down completely randomly.
Pair Corralation between Sangsangin Investment and DSC Investment
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.61 times more return on investment than DSC Investment. However, Sangsangin Investment Securities is 1.63 times less risky than DSC Investment. It trades about -0.14 of its potential returns per unit of risk. DSC Investment is currently generating about -0.24 per unit of risk. If you would invest 43,600 in Sangsangin Investment Securities on November 5, 2024 and sell it today you would lose (700.00) from holding Sangsangin Investment Securities or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. DSC Investment
Performance |
| Timeline |
| Sangsangin Investment |
| DSC Investment |
Sangsangin Investment and DSC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and DSC Investment
The main advantage of trading using opposite Sangsangin Investment and DSC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, DSC Investment 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 DSC Investment will offset losses from the drop in DSC Investment's long position.| Sangsangin Investment vs. Hotel Shilla Co | Sangsangin Investment vs. Dongbang Transport Logistics | Sangsangin Investment vs. Samyung Trading Co | Sangsangin Investment vs. Korea Investment Holdings |
| DSC Investment vs. Hanjin Transportation Co | DSC Investment vs. Taegu Broadcasting | DSC Investment vs. Korea Information Communications | DSC Investment vs. Nable Communications |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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