Correlation Between Ssangyong Information and Alton Sports
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Alton Sports 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 Alton Sports 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 Alton Sports CoLtd, you can compare the effects of market volatilities on Ssangyong Information and Alton Sports 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 Alton Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Alton Sports.
Diversification Opportunities for Ssangyong Information and Alton Sports
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and Alton is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Alton Sports CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alton Sports 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 Alton Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alton Sports CoLtd has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Alton Sports go up and down completely randomly.
Pair Corralation between Ssangyong Information and Alton Sports
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.73 times more return on investment than Alton Sports. However, Ssangyong Information Communication is 1.37 times less risky than Alton Sports. It trades about -0.06 of its potential returns per unit of risk. Alton Sports CoLtd is currently generating about -0.13 per unit of risk. If you would invest 88,700 in Ssangyong Information Communication on August 28, 2024 and sell it today you would lose (26,200) from holding Ssangyong Information Communication or give up 29.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Alton Sports CoLtd
Performance |
| Timeline |
| Ssangyong Information |
| Alton Sports CoLtd |
Ssangyong Information and Alton Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Alton Sports
The main advantage of trading using opposite Ssangyong Information and Alton Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Alton Sports 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 Alton Sports will offset losses from the drop in Alton Sports' long position.| Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind | Ssangyong Information vs. Mirae Asset Daewoo | Ssangyong Information vs. UNISEM Co |
| Alton Sports vs. Busan Industrial Co | Alton Sports vs. Busan Ind | Alton Sports vs. Mirae Asset Daewoo | Alton Sports vs. UNISEM 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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