Correlation Between Taeyang Metal and SOOSAN INT
Can any of the company-specific risk be diversified away by investing in both Taeyang Metal and SOOSAN INT 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 Taeyang Metal and SOOSAN INT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taeyang Metal Industrial and SOOSAN INT Co, you can compare the effects of market volatilities on Taeyang Metal and SOOSAN INT 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 Taeyang Metal with a short position of SOOSAN INT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taeyang Metal and SOOSAN INT.
Diversification Opportunities for Taeyang Metal and SOOSAN INT
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Taeyang and SOOSAN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Taeyang Metal Industrial and SOOSAN INT Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOOSAN INT and Taeyang Metal 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 Taeyang Metal Industrial are associated (or correlated) with SOOSAN INT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOOSAN INT has no effect on the direction of Taeyang Metal i.e., Taeyang Metal and SOOSAN INT go up and down completely randomly.
Pair Corralation between Taeyang Metal and SOOSAN INT
Assuming the 90 days trading horizon Taeyang Metal Industrial is expected to generate 3.46 times more return on investment than SOOSAN INT. However, Taeyang Metal is 3.46 times more volatile than SOOSAN INT Co. It trades about 0.02 of its potential returns per unit of risk. SOOSAN INT Co is currently generating about -0.01 per unit of risk. If you would invest 523,343 in Taeyang Metal Industrial on August 25, 2024 and sell it today you would lose (58,343) from holding Taeyang Metal Industrial or give up 11.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taeyang Metal Industrial vs. SOOSAN INT Co
Performance |
| Timeline |
| Taeyang Metal Industrial |
| SOOSAN INT |
Taeyang Metal and SOOSAN INT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taeyang Metal and SOOSAN INT
The main advantage of trading using opposite Taeyang Metal and SOOSAN INT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taeyang Metal position performs unexpectedly, SOOSAN INT 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 SOOSAN INT will offset losses from the drop in SOOSAN INT's long position.| Taeyang Metal vs. AptaBio Therapeutics | Taeyang Metal vs. Daewoo SBI SPAC | Taeyang Metal vs. Dream Security co | Taeyang Metal vs. Microfriend |
| SOOSAN INT vs. EBEST Investment Securities | SOOSAN INT vs. Taeyang Metal Industrial | SOOSAN INT vs. Kukil Metal Co | SOOSAN INT vs. Golden Bridge Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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