Correlation Between Ssangyong Information and Wonil Special
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on Ssangyong Information and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Wonil Special.
Diversification Opportunities for Ssangyong Information and Wonil Special
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ssangyong and Wonil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Wonil Special go up and down completely randomly.
Pair Corralation between Ssangyong Information and Wonil Special
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Wonil Special. In addition to that, Ssangyong Information is 1.44 times more volatile than Wonil Special Steel. It trades about -0.02 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about -0.03 per unit of volatility. If you would invest 893,204 in Wonil Special Steel on September 26, 2024 and sell it today you would lose (168,204) from holding Wonil Special Steel or give up 18.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Wonil Special Steel
Performance |
| Timeline |
| Ssangyong Information |
| Wonil Special Steel |
Ssangyong Information and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Wonil Special
The main advantage of trading using opposite Ssangyong Information and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| Ssangyong Information vs. DONGKUK TED METAL | Ssangyong Information vs. Kukil Metal Co | Ssangyong Information vs. Duksan Hi Metal | Ssangyong Information vs. Incar Financial Service |
| Wonil Special vs. Ssangyong Information Communication | Wonil Special vs. SK Telecom Co | Wonil Special vs. Daedong Steel Co | Wonil Special vs. Ni Steel |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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