Correlation Between Bosung Power and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Sangsin Energy 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 Bosung Power and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and Sangsin Energy Display, you can compare the effects of market volatilities on Bosung Power and Sangsin Energy 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 Bosung Power with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Sangsin Energy.
Diversification Opportunities for Bosung Power and Sangsin Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bosung and Sangsin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and Bosung Power 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 Bosung Power Technology are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Bosung Power i.e., Bosung Power and Sangsin Energy go up and down completely randomly.
Pair Corralation between Bosung Power and Sangsin Energy
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 1.45 times more return on investment than Sangsin Energy. However, Bosung Power is 1.45 times more volatile than Sangsin Energy Display. It trades about 0.01 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.11 per unit of risk. If you would invest 324,000 in Bosung Power Technology on August 25, 2024 and sell it today you would lose (24,000) from holding Bosung Power Technology or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. Sangsin Energy Display
Performance |
| Timeline |
| Bosung Power Technology |
| Sangsin Energy Display |
Bosung Power and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Sangsin Energy
The main advantage of trading using opposite Bosung Power and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Bosung Power vs. Samsung Electronics Co | Bosung Power vs. Samsung Electronics Co | Bosung Power vs. Hyundai Motor Co | Bosung Power vs. Hyundai Motor |
| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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