Correlation Between Daehan Synthetic and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and Ssangyong Information 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 Daehan Synthetic and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daehan Synthetic Fiber and Ssangyong Information Communication, you can compare the effects of market volatilities on Daehan Synthetic and Ssangyong Information 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 Daehan Synthetic with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and Ssangyong Information.
Diversification Opportunities for Daehan Synthetic and Ssangyong Information
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daehan and Ssangyong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Daehan Synthetic 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 Daehan Synthetic Fiber are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and Ssangyong Information go up and down completely randomly.
Pair Corralation between Daehan Synthetic and Ssangyong Information
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to under-perform the Ssangyong Information. But the stock apears to be less risky and, when comparing its historical volatility, Daehan Synthetic Fiber is 1.99 times less risky than Ssangyong Information. The stock trades about -0.08 of its potential returns per unit of risk. The Ssangyong Information Communication is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 60,300 in Ssangyong Information Communication on September 4, 2024 and sell it today you would earn a total of 4,100 from holding Ssangyong Information Communication or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daehan Synthetic Fiber vs. Ssangyong Information Communic
Performance |
| Timeline |
| Daehan Synthetic Fiber |
| Ssangyong Information |
Daehan Synthetic and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daehan Synthetic and Ssangyong Information
The main advantage of trading using opposite Daehan Synthetic and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Daehan Synthetic vs. LG Display Co | Daehan Synthetic vs. Sangsin Energy Display | Daehan Synthetic vs. Okins Electronics Co | Daehan Synthetic vs. Visang Education |
| Ssangyong Information vs. InfoBank | Ssangyong Information vs. Sam Yang Foods | Ssangyong Information vs. Jeju Bank | Ssangyong Information vs. Hana Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |