Correlation Between Ssangyong Information and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Eugene Technology 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 Eugene Technology 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 Eugene Technology CoLtd, you can compare the effects of market volatilities on Ssangyong Information and Eugene Technology 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 Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Eugene Technology.
Diversification Opportunities for Ssangyong Information and Eugene Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and Eugene is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd 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 Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Eugene Technology go up and down completely randomly.
Pair Corralation between Ssangyong Information and Eugene Technology
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Eugene Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.94 times less risky than Eugene Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Eugene Technology CoLtd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,204,532 in Eugene Technology CoLtd on September 20, 2024 and sell it today you would earn a total of 975,468 from holding Eugene Technology CoLtd or generate 44.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Eugene Technology CoLtd
Performance |
| Timeline |
| Ssangyong Information |
| Eugene Technology CoLtd |
Ssangyong Information and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Eugene Technology
The main advantage of trading using opposite Ssangyong Information and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Solution Advanced Technology | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
| Eugene Technology vs. Cube Entertainment | Eugene Technology vs. Dreamus Company | Eugene Technology vs. LG Energy Solution | Eugene Technology vs. Dongwon System |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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