Correlation Between Ssangyong Information and Korea Information
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Korea Information 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 Korea Information 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 Korea Information Communications, you can compare the effects of market volatilities on Ssangyong Information and Korea Information 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 Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Korea Information.
Diversification Opportunities for Ssangyong Information and Korea Information
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Korea is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Korea Information Communicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information 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 Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Korea Information go up and down completely randomly.
Pair Corralation between Ssangyong Information and Korea Information
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.85 times more return on investment than Korea Information. However, Ssangyong Information Communication is 1.17 times less risky than Korea Information. It trades about 0.01 of its potential returns per unit of risk. Korea Information Communications is currently generating about -0.03 per unit of risk. If you would invest 62,500 in Ssangyong Information Communication on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Ssangyong Information Communication or generate 0.16% 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. Korea Information Communicatio
Performance |
| Timeline |
| Ssangyong Information |
| Korea Information |
Ssangyong Information and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Korea Information
The main advantage of trading using opposite Ssangyong Information and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind | Ssangyong Information vs. Mirae Asset Daewoo | Ssangyong Information vs. UNISEM Co |
| Korea Information vs. Korea Real Estate | Korea Information vs. Korea Ratings Co | Korea Information vs. IQuest Co | Korea Information vs. Wonbang Tech Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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