Correlation Between Ssangyong Information and DB HiTek
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and DB HiTek 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 Ssangyong Information and DB HiTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and DB HiTek Co, you can compare the effects of market volatilities on Ssangyong Information and DB HiTek 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 Ssangyong Information with a short position of DB HiTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and DB HiTek.
Diversification Opportunities for Ssangyong Information and DB HiTek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ssangyong and 000990 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and DB HiTek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB HiTek and Ssangyong Information 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 Ssangyong Information Communication are associated (or correlated) with DB HiTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB HiTek has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and DB HiTek go up and down completely randomly.
Pair Corralation between Ssangyong Information and DB HiTek
If you would invest 0.00 in DB HiTek Co on November 3, 2024 and sell it today you would earn a total of 0.00 from holding DB HiTek Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Ssangyong Information Communic vs. DB HiTek Co
Performance |
| Timeline |
| Ssangyong Information |
| DB HiTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ssangyong Information and DB HiTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and DB HiTek
The main advantage of trading using opposite Ssangyong Information and DB HiTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, DB HiTek 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 DB HiTek will offset losses from the drop in DB HiTek's long position.The idea behind Ssangyong Information Communication and DB HiTek Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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