Correlation Between Sangsangin Investment and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Daishin Balance 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 Daishin Balance 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 Daishin Balance No8, you can compare the effects of market volatilities on Sangsangin Investment and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Daishin Balance.
Diversification Opportunities for Sangsangin Investment and Daishin Balance
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsangin and Daishin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Daishin Balance go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Daishin Balance
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.44 times more return on investment than Daishin Balance. However, Sangsangin Investment Securities is 2.28 times less risky than Daishin Balance. It trades about -0.02 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about -0.44 per unit of risk. If you would invest 44,600 in Sangsangin Investment Securities on August 31, 2024 and sell it today you would lose (300.00) from holding Sangsangin Investment Securities or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Daishin Balance No8
Performance |
| Timeline |
| Sangsangin Investment |
| Daishin Balance No8 |
Sangsangin Investment and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Daishin Balance
The main advantage of trading using opposite Sangsangin Investment and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance'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 |
| Daishin Balance vs. Samsung Electronics Co | Daishin Balance vs. Samsung Electronics Co | Daishin Balance vs. LG Energy Solution | Daishin Balance vs. SK Hynix |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |