Correlation Between Ssangyong Information and Moadata Co
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Moadata Co 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 Moadata Co 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 Moadata Co, you can compare the effects of market volatilities on Ssangyong Information and Moadata Co 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 Moadata Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Moadata Co.
Diversification Opportunities for Ssangyong Information and Moadata Co
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ssangyong and Moadata is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Moadata Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moadata Co 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 Moadata Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moadata Co has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Moadata Co go up and down completely randomly.
Pair Corralation between Ssangyong Information and Moadata Co
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.45 times more return on investment than Moadata Co. However, Ssangyong Information Communication is 2.24 times less risky than Moadata Co. It trades about 0.06 of its potential returns per unit of risk. Moadata Co is currently generating about -0.08 per unit of risk. If you would invest 60,900 in Ssangyong Information Communication on September 13, 2024 and sell it today you would earn a total of 2,200 from holding Ssangyong Information Communication or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Moadata Co
Performance |
| Timeline |
| Ssangyong Information |
| Moadata Co |
Ssangyong Information and Moadata Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Moadata Co
The main advantage of trading using opposite Ssangyong Information and Moadata Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Moadata Co 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 Moadata Co will offset losses from the drop in Moadata Co's long position.| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Solution Advanced Technology | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
| Moadata Co vs. Dongwoo Farm To | Moadata Co vs. Sungdo Engineering Construction | Moadata Co vs. Keyang Electric Machinery | Moadata Co vs. Seohee Construction 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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