Correlation Between Ssangyong Information and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Samyoung Electronics 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 Samyoung Electronics 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Ssangyong Information and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Samyoung Electronics.
Diversification Opportunities for Ssangyong Information and Samyoung Electronics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ssangyong and Samyoung is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Ssangyong Information and Samyoung Electronics
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 1.76 times more return on investment than Samyoung Electronics. However, Ssangyong Information is 1.76 times more volatile than Samyoung Electronics Co. It trades about 0.12 of its potential returns per unit of risk. Samyoung Electronics Co is currently generating about -0.21 per unit of risk. If you would invest 59,000 in Ssangyong Information Communication on September 13, 2024 and sell it today you would earn a total of 3,200 from holding Ssangyong Information Communication or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Samyoung Electronics Co
Performance |
| Timeline |
| Ssangyong Information |
| Samyoung Electronics |
Ssangyong Information and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Samyoung Electronics
The main advantage of trading using opposite Ssangyong Information and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Daishin Information Communications | Ssangyong Information vs. Solution Advanced Technology | Ssangyong Information vs. Busan Industrial Co |
| Samyoung Electronics vs. Ssangyong Information Communication | Samyoung Electronics vs. TOPMATERIAL LTD | Samyoung Electronics vs. Kisan Telecom Co | Samyoung Electronics vs. Ssangyong Materials Corp |
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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