Correlation Between Ssangyong Information and NICE Information
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and NICE 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 NICE 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 NICE Information Service, you can compare the effects of market volatilities on Ssangyong Information and NICE 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 NICE Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and NICE Information.
Diversification Opportunities for Ssangyong Information and NICE Information
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ssangyong and NICE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and NICE Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NICE Information Service 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 NICE Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NICE Information Service has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and NICE Information go up and down completely randomly.
Pair Corralation between Ssangyong Information and NICE Information
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the NICE Information. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.17 times less risky than NICE Information. The stock trades about -0.03 of its potential returns per unit of risk. The NICE Information Service is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,252,802 in NICE Information Service on October 28, 2024 and sell it today you would earn a total of 7,198 from holding NICE Information Service or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. NICE Information Service
Performance |
| Timeline |
| Ssangyong Information |
| NICE Information Service |
Ssangyong Information and NICE Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and NICE Information
The main advantage of trading using opposite Ssangyong Information and NICE Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, NICE 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 NICE Information will offset losses from the drop in NICE Information's long position.| Ssangyong Information vs. Nature and Environment | Ssangyong Information vs. Seah Steel Corp | Ssangyong Information vs. Jeju Beer Co | Ssangyong Information vs. Netmarble Games Corp |
| NICE Information vs. Aprogen Healthcare Games | NICE Information vs. DoubleU Games Co | NICE Information vs. Hanjin Transportation Co | NICE Information vs. Foodnamoo |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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