Correlation Between Sung Bo and CG Hi
Can any of the company-specific risk be diversified away by investing in both Sung Bo and CG Hi 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 Sung Bo and CG Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sung Bo Chemicals and CG Hi Tech, you can compare the effects of market volatilities on Sung Bo and CG Hi 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 Sung Bo with a short position of CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sung Bo and CG Hi.
Diversification Opportunities for Sung Bo and CG Hi
Very weak diversification
The 3 months correlation between Sung and 264660 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sung Bo Chemicals and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech and Sung Bo 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 Sung Bo Chemicals are associated (or correlated) with CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of Sung Bo i.e., Sung Bo and CG Hi go up and down completely randomly.
Pair Corralation between Sung Bo and CG Hi
Assuming the 90 days trading horizon Sung Bo is expected to generate 378.11 times less return on investment than CG Hi. But when comparing it to its historical volatility, Sung Bo Chemicals is 6.18 times less risky than CG Hi. It trades about 0.0 of its potential returns per unit of risk. CG Hi Tech is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 980,000 in CG Hi Tech on November 7, 2024 and sell it today you would earn a total of 173,000 from holding CG Hi Tech or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sung Bo Chemicals vs. CG Hi Tech
Performance |
| Timeline |
| Sung Bo Chemicals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| CG Hi Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sung Bo and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sung Bo and CG Hi
The main advantage of trading using opposite Sung Bo and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sung Bo position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| Sung Bo vs. Samsung Publishing Co | Sung Bo vs. Hansol Chemical Co | Sung Bo vs. FNSTech Co | Sung Bo vs. TK Chemical |
| CG Hi vs. Global Standard Technology | CG Hi vs. Guyoung Technology Co | CG Hi vs. Settlebank | CG Hi vs. SK IE Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |