Correlation Between Ssangyong Information and Korea Computer
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Korea Computer 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 Computer 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 Computer, you can compare the effects of market volatilities on Ssangyong Information and Korea Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Korea Computer.
Diversification Opportunities for Ssangyong Information and Korea Computer
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ssangyong and Korea is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Korea Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Korea Computer go up and down completely randomly.
Pair Corralation between Ssangyong Information and Korea Computer
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.34 times more return on investment than Korea Computer. However, Ssangyong Information Communication is 2.98 times less risky than Korea Computer. It trades about 0.14 of its potential returns per unit of risk. Korea Computer is currently generating about 0.02 per unit of risk. If you would invest 60,300 in Ssangyong Information Communication on August 30, 2024 and sell it today you would earn a total of 2,100 from holding Ssangyong Information Communication or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Korea Computer
Performance |
| Timeline |
| Ssangyong Information |
| Korea Computer |
Ssangyong Information and Korea Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Korea Computer
The main advantage of trading using opposite Ssangyong Information and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Korea Computer 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 Computer will offset losses from the drop in Korea Computer's long position.| Ssangyong Information vs. Cafe24 Corp | Ssangyong Information vs. Korea Computer Systems | Ssangyong Information vs. Daishin Information Communications | Ssangyong Information vs. SSR Inc |
| Korea Computer vs. Daou Data Corp | Korea Computer vs. Busan Industrial Co | Korea Computer vs. Busan Ind | Korea Computer vs. Shinhan WTI Futures |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |