Correlation Between Sangsangin Investment and Cots Technology
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Cots Technology 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 Cots Technology 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 Cots Technology Co, you can compare the effects of market volatilities on Sangsangin Investment and Cots Technology 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 Cots Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Cots Technology.
Diversification Opportunities for Sangsangin Investment and Cots Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sangsangin and Cots is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Cots Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cots Technology 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 Cots Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cots Technology has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Cots Technology go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Cots Technology
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.41 times more return on investment than Cots Technology. However, Sangsangin Investment Securities is 2.42 times less risky than Cots Technology. It trades about -0.07 of its potential returns per unit of risk. Cots Technology Co is currently generating about -0.49 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Cots Technology Co
Performance |
| Timeline |
| Sangsangin Investment |
| Cots Technology |
Sangsangin Investment and Cots Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Cots Technology
The main advantage of trading using opposite Sangsangin Investment and Cots Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Cots Technology 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 Cots Technology will offset losses from the drop in Cots Technology'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 |
| Cots Technology vs. Samsung Electronics Co | Cots Technology vs. Samsung Electronics Co | Cots Technology vs. LG Energy Solution | Cots Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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