Correlation Between Ssangyong Information and UTI
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and UTI 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 UTI 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 UTI Inc, you can compare the effects of market volatilities on Ssangyong Information and UTI 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 UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and UTI.
Diversification Opportunities for Ssangyong Information and UTI
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and UTI is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and UTI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Inc 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 UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Inc has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and UTI go up and down completely randomly.
Pair Corralation between Ssangyong Information and UTI
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the UTI. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 2.19 times less risky than UTI. The stock trades about -0.05 of its potential returns per unit of risk. The UTI Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,210,000 in UTI Inc on September 15, 2024 and sell it today you would lose (1,050,000) from holding UTI Inc or give up 32.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. UTI Inc
Performance |
| Timeline |
| Ssangyong Information |
| UTI Inc |
Ssangyong Information and UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and UTI
The main advantage of trading using opposite Ssangyong Information and UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, UTI 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 UTI will offset losses from the drop in UTI's long position.| Ssangyong Information vs. Samlip General Foods | Ssangyong Information vs. FoodNamoo | Ssangyong Information vs. LG Household Healthcare | Ssangyong Information vs. Cuckoo Electronics Co |
| UTI vs. Nice Information Telecommunication | UTI vs. Daejung Chemicals Metals | UTI vs. Dongil Metal Co | UTI vs. Ssangyong Information Communication |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |