Correlation Between Ssangyong Information and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and KTB Investment 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 KTB Investment 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 KTB Investment Securities, you can compare the effects of market volatilities on Ssangyong Information and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and KTB Investment.
Diversification Opportunities for Ssangyong Information and KTB Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssangyong and KTB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and KTB Investment go up and down completely randomly.
Pair Corralation between Ssangyong Information and KTB Investment
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.51 times more return on investment than KTB Investment. However, Ssangyong Information Communication is 1.94 times less risky than KTB Investment. It trades about 0.07 of its potential returns per unit of risk. KTB Investment Securities is currently generating about 0.02 per unit of risk. If you would invest 60,900 in Ssangyong Information Communication on October 14, 2024 and sell it today you would earn a total of 3,600 from holding Ssangyong Information Communication or generate 5.91% 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. KTB Investment Securities
Performance |
| Timeline |
| Ssangyong Information |
| KTB Investment Securities |
Ssangyong Information and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and KTB Investment
The main advantage of trading using opposite Ssangyong Information and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Ssangyong Information vs. Raontech | Ssangyong Information vs. Amogreentech Co | Ssangyong Information vs. A Tech Solution Co | Ssangyong Information vs. N2Tech Co |
| KTB Investment vs. TS Investment Corp | KTB Investment vs. Woori Technology Investment | KTB Investment vs. Hankook Steel Co | KTB Investment vs. INSUN Environmental New |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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