Correlation Between Ssangyong Information and SEOHAN Const
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and SEOHAN Const 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 SEOHAN Const 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 SEOHAN Const EngcoLtd, you can compare the effects of market volatilities on Ssangyong Information and SEOHAN Const 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 SEOHAN Const. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and SEOHAN Const.
Diversification Opportunities for Ssangyong Information and SEOHAN Const
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and SEOHAN is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and SEOHAN Const EngcoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOHAN Const EngcoLtd 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 SEOHAN Const. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOHAN Const EngcoLtd has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and SEOHAN Const go up and down completely randomly.
Pair Corralation between Ssangyong Information and SEOHAN Const
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the SEOHAN Const. In addition to that, Ssangyong Information is 1.15 times more volatile than SEOHAN Const EngcoLtd. It trades about -0.06 of its total potential returns per unit of risk. SEOHAN Const EngcoLtd is currently generating about -0.05 per unit of volatility. If you would invest 108,960 in SEOHAN Const EngcoLtd on August 31, 2024 and sell it today you would lose (28,660) from holding SEOHAN Const EngcoLtd or give up 26.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. SEOHAN Const EngcoLtd
Performance |
| Timeline |
| Ssangyong Information |
| SEOHAN Const EngcoLtd |
Ssangyong Information and SEOHAN Const Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and SEOHAN Const
The main advantage of trading using opposite Ssangyong Information and SEOHAN Const positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, SEOHAN Const 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 SEOHAN Const will offset losses from the drop in SEOHAN Const's long position.| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Daishin Information Communications | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
| SEOHAN Const vs. Dongil Metal Co | SEOHAN Const vs. MetaLabs Co | SEOHAN Const vs. SBI Investment KOREA | SEOHAN Const vs. Stic Investments |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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