Correlation Between Hotel Shilla and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Hotel Shilla and Sangsangin Investment 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 Hotel Shilla and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Shilla Co and Sangsangin Investment Securities, you can compare the effects of market volatilities on Hotel Shilla and Sangsangin Investment 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 Hotel Shilla with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Shilla and Sangsangin Investment.
Diversification Opportunities for Hotel Shilla and Sangsangin Investment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hotel and Sangsangin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Shilla Co and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and Hotel Shilla 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 Hotel Shilla Co are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Hotel Shilla i.e., Hotel Shilla and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Hotel Shilla and Sangsangin Investment
Assuming the 90 days trading horizon Hotel Shilla Co is expected to under-perform the Sangsangin Investment. But the stock apears to be less risky and, when comparing its historical volatility, Hotel Shilla Co is 1.5 times less risky than Sangsangin Investment. The stock trades about -0.08 of its potential returns per unit of risk. The Sangsangin Investment Securities is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 43,300 in Sangsangin Investment Securities on October 22, 2024 and sell it today you would lose (400.00) from holding Sangsangin Investment Securities or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hotel Shilla Co vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Hotel Shilla |
| Sangsangin Investment |
Hotel Shilla and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Shilla and Sangsangin Investment
The main advantage of trading using opposite Hotel Shilla and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Shilla position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| Hotel Shilla vs. Kakao Games Corp | Hotel Shilla vs. Korea Investment Holdings | Hotel Shilla vs. DoubleU Games Co | Hotel Shilla vs. Atinum Investment Co |
| Sangsangin Investment vs. Hotel Shilla Co | Sangsangin Investment vs. LB Investment | Sangsangin Investment vs. Industrial Bank | Sangsangin Investment vs. Settlebank |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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