Correlation Between Ssangyong Information and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Wireless Power 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 Wireless Power 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 Wireless Power Amplifier, you can compare the effects of market volatilities on Ssangyong Information and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Wireless Power.
Diversification Opportunities for Ssangyong Information and Wireless Power
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and Wireless is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Wireless Power go up and down completely randomly.
Pair Corralation between Ssangyong Information and Wireless Power
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Wireless Power. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.84 times less risky than Wireless Power. The stock trades about -0.03 of its potential returns per unit of risk. The Wireless Power Amplifier is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 326,000 in Wireless Power Amplifier on September 3, 2024 and sell it today you would lose (103,000) from holding Wireless Power Amplifier or give up 31.6% 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. Wireless Power Amplifier
Performance |
| Timeline |
| Ssangyong Information |
| Wireless Power Amplifier |
Ssangyong Information and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Wireless Power
The main advantage of trading using opposite Ssangyong Information and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Ssangyong Information vs. SBI Investment KOREA | Ssangyong Information vs. Jeju Beer Co | Ssangyong Information vs. Coloray International Investment | Ssangyong Information vs. NH Investment Securities |
| Wireless Power vs. Daejoo Electronic Materials | Wireless Power vs. Parksystems Corp | Wireless Power vs. BH Co | Wireless Power vs. Partron 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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