Correlation Between Ssangyong Information and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on Ssangyong Information and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and SEOJEON ELECTRIC.
Diversification Opportunities for Ssangyong Information and SEOJEON ELECTRIC
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and SEOJEON is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between Ssangyong Information and SEOJEON ELECTRIC
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the SEOJEON ELECTRIC. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 5.62 times less risky than SEOJEON ELECTRIC. The stock trades about -0.13 of its potential returns per unit of risk. The SEOJEON ELECTRIC MACHINERY is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 402,000 in SEOJEON ELECTRIC MACHINERY on November 7, 2024 and sell it today you would earn a total of 72,500 from holding SEOJEON ELECTRIC MACHINERY or generate 18.03% 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. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
| Ssangyong Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| SEOJEON ELECTRIC MAC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ssangyong Information and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and SEOJEON ELECTRIC
The main advantage of trading using opposite Ssangyong Information and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| Ssangyong Information vs. Bosung Power Technology | Ssangyong Information vs. Neungyule Education | Ssangyong Information vs. Samsung Publishing Co | Ssangyong Information vs. Seoul Semiconductor Co |
| SEOJEON ELECTRIC vs. Koh Young Technology | SEOJEON ELECTRIC vs. Hana Financial | SEOJEON ELECTRIC vs. Samsung Securities |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |