Correlation Between Ssangyong Information and Daehan Synthetic
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Daehan Synthetic 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 Daehan Synthetic 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 Daehan Synthetic Fiber, you can compare the effects of market volatilities on Ssangyong Information and Daehan Synthetic 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 Daehan Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Daehan Synthetic.
Diversification Opportunities for Ssangyong Information and Daehan Synthetic
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Daehan is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Daehan Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Synthetic Fiber 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 Daehan Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Synthetic Fiber has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Daehan Synthetic go up and down completely randomly.
Pair Corralation between Ssangyong Information and Daehan Synthetic
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 1.99 times more return on investment than Daehan Synthetic. However, Ssangyong Information is 1.99 times more volatile than Daehan Synthetic Fiber. It trades about 0.23 of its potential returns per unit of risk. Daehan Synthetic Fiber is currently generating about -0.08 per unit of risk. 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 |
Ssangyong Information Communic vs. Daehan Synthetic Fiber
Performance |
| Timeline |
| Ssangyong Information |
| Daehan Synthetic Fiber |
Ssangyong Information and Daehan Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Daehan Synthetic
The main advantage of trading using opposite Ssangyong Information and Daehan Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Daehan Synthetic 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 Daehan Synthetic will offset losses from the drop in Daehan Synthetic's long position.| Ssangyong Information vs. InfoBank | Ssangyong Information vs. Sam Yang Foods | Ssangyong Information vs. Jeju Bank | Ssangyong Information vs. Hana Financial |
| Daehan Synthetic vs. LG Display Co | Daehan Synthetic vs. Sangsin Energy Display | Daehan Synthetic vs. Okins Electronics Co | Daehan Synthetic vs. Visang Education |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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