Correlation Between Ssangyong Information and Busan Ind
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Busan Ind 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 Busan Ind 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 Busan Ind, you can compare the effects of market volatilities on Ssangyong Information and Busan Ind 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 Busan Ind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Busan Ind.
Diversification Opportunities for Ssangyong Information and Busan Ind
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Busan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Busan Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Ind 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 Busan Ind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Ind has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Busan Ind go up and down completely randomly.
Pair Corralation between Ssangyong Information and Busan Ind
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 2.23 times more return on investment than Busan Ind. However, Ssangyong Information is 2.23 times more volatile than Busan Ind. It trades about 0.25 of its potential returns per unit of risk. Busan Ind is currently generating about -0.03 per unit of risk. If you would invest 63,200 in Ssangyong Information Communication on December 1, 2024 and sell it today you would earn a total of 22,600 from holding Ssangyong Information Communication or generate 35.76% 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. Busan Ind
Performance |
| Timeline |
| Ssangyong Information |
| Busan Ind |
Ssangyong Information and Busan Ind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Busan Ind
The main advantage of trading using opposite Ssangyong Information and Busan Ind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Busan Ind 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 Busan Ind will offset losses from the drop in Busan Ind's long position.| Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. PJ Metal Co | Ssangyong Information vs. Formetal Co | Ssangyong Information vs. Eagon Industrial Co |
| Busan Ind vs. Shinsegae Food | Busan Ind vs. Lotte Fine Chemical | Busan Ind vs. Samyang Foods Co | Busan Ind vs. Shinhan Inverse Silver |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |