Correlation Between Ssangyong Information and DreamCIS
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and DreamCIS 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 DreamCIS 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 DreamCIS, you can compare the effects of market volatilities on Ssangyong Information and DreamCIS 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 DreamCIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and DreamCIS.
Diversification Opportunities for Ssangyong Information and DreamCIS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and DreamCIS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and DreamCIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DreamCIS 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 DreamCIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DreamCIS has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and DreamCIS go up and down completely randomly.
Pair Corralation between Ssangyong Information and DreamCIS
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.43 times more return on investment than DreamCIS. However, Ssangyong Information Communication is 2.34 times less risky than DreamCIS. It trades about 0.21 of its potential returns per unit of risk. DreamCIS is currently generating about -0.37 per unit of risk. If you would invest 60,300 in Ssangyong Information Communication on September 4, 2024 and sell it today you would earn a total of 3,800 from holding Ssangyong Information Communication or generate 6.3% 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. DreamCIS
Performance |
| Timeline |
| Ssangyong Information |
| DreamCIS |
Ssangyong Information and DreamCIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and DreamCIS
The main advantage of trading using opposite Ssangyong Information and DreamCIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, DreamCIS 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 DreamCIS will offset losses from the drop in DreamCIS's long position.| Ssangyong Information vs. Cafe24 Corp | Ssangyong Information vs. Korea Computer Systems | Ssangyong Information vs. SSR Inc |
| DreamCIS vs. Samyang Foods Co | DreamCIS vs. Sam Yang Foods | DreamCIS vs. Hanjin Transportation Co | DreamCIS vs. Samlip General Foods |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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