Correlation Between Ssangyong Information and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Kukdong Oil 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 Kukdong Oil 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 Kukdong Oil Chemicals, you can compare the effects of market volatilities on Ssangyong Information and Kukdong Oil 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 Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Kukdong Oil.
Diversification Opportunities for Ssangyong Information and Kukdong Oil
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and Kukdong is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals 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 Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Kukdong Oil go up and down completely randomly.
Pair Corralation between Ssangyong Information and Kukdong Oil
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Kukdong Oil. In addition to that, Ssangyong Information is 1.29 times more volatile than Kukdong Oil Chemicals. It trades about -0.01 of its total potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about 0.17 per unit of volatility. If you would invest 341,407 in Kukdong Oil Chemicals on October 15, 2024 and sell it today you would earn a total of 8,593 from holding Kukdong Oil Chemicals or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| Ssangyong Information |
| Kukdong Oil Chemicals |
Ssangyong Information and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Kukdong Oil
The main advantage of trading using opposite Ssangyong Information and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Ssangyong Information vs. Raontech | Ssangyong Information vs. Amogreentech Co | Ssangyong Information vs. A Tech Solution Co | Ssangyong Information vs. N2Tech Co |
| Kukdong Oil vs. BGF Retail Co | Kukdong Oil vs. HB Technology TD | Kukdong Oil vs. Samick Musical Instruments | Kukdong Oil vs. Ssangyong Information Communication |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |