Correlation Between Ssangyong Information and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Infinitt Healthcare 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 Infinitt Healthcare 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 Infinitt Healthcare Co, you can compare the effects of market volatilities on Ssangyong Information and Infinitt Healthcare 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 Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Infinitt Healthcare.
Diversification Opportunities for Ssangyong Information and Infinitt Healthcare
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssangyong and Infinitt is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare 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 Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Ssangyong Information and Infinitt Healthcare
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Infinitt Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.24 times less risky than Infinitt Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Infinitt Healthcare Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 531,000 in Infinitt Healthcare Co on September 1, 2024 and sell it today you would lose (81,000) from holding Infinitt Healthcare Co or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.64% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Ssangyong Information |
| Infinitt Healthcare |
Ssangyong Information and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Infinitt Healthcare
The main advantage of trading using opposite Ssangyong Information and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind | Ssangyong Information vs. Mirae Asset Daewoo |
| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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