Correlation Between Ssangyong Information and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Ssangyong Information and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Mobile Appliance.
Diversification Opportunities for Ssangyong Information and Mobile Appliance
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Mobile is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Mobile Appliance go up and down completely randomly.
Pair Corralation between Ssangyong Information and Mobile Appliance
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Mobile Appliance. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 2.3 times less risky than Mobile Appliance. The stock trades about -0.13 of its potential returns per unit of risk. The Mobile Appliance is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 214,500 in Mobile Appliance on November 6, 2024 and sell it today you would earn a total of 14,500 from holding Mobile Appliance or generate 6.76% 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. Mobile Appliance
Performance |
| Timeline |
| Ssangyong Information |
| Mobile Appliance |
Ssangyong Information and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Mobile Appliance
The main advantage of trading using opposite Ssangyong Information and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Ssangyong Information vs. Korean Air Lines | Ssangyong Information vs. Jahwa Electronics Co | Ssangyong Information vs. PJ Electronics Co | Ssangyong Information vs. Daewoo Electronic Components |
| Mobile Appliance vs. AeroSpace Technology of | Mobile Appliance vs. Puloon Technology | Mobile Appliance vs. Homecast CoLtd | Mobile Appliance vs. Guyoung Technology Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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