Correlation Between Busan Ind and SSR
Can any of the company-specific risk be diversified away by investing in both Busan Ind and SSR 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 Busan Ind and SSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Ind and SSR Inc, you can compare the effects of market volatilities on Busan Ind and SSR 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 Busan Ind with a short position of SSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Ind and SSR.
Diversification Opportunities for Busan Ind and SSR
Very good diversification
The 3 months correlation between Busan and SSR is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Busan Ind and SSR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Inc and Busan Ind 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 Busan Ind are associated (or correlated) with SSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Inc has no effect on the direction of Busan Ind i.e., Busan Ind and SSR go up and down completely randomly.
Pair Corralation between Busan Ind and SSR
Assuming the 90 days trading horizon Busan Ind is expected to generate 1.4 times less return on investment than SSR. In addition to that, Busan Ind is 5.74 times more volatile than SSR Inc. It trades about 0.04 of its total potential returns per unit of risk. SSR Inc is currently generating about 0.35 per unit of volatility. If you would invest 322,000 in SSR Inc on August 25, 2024 and sell it today you would earn a total of 23,500 from holding SSR Inc or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Busan Ind vs. SSR Inc
Performance |
| Timeline |
| Busan Ind |
| SSR Inc |
Busan Ind and SSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Ind and SSR
The main advantage of trading using opposite Busan Ind and SSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Ind position performs unexpectedly, SSR 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 SSR will offset losses from the drop in SSR's long position.| Busan Ind vs. Daekyung Machinery Engineering | Busan Ind vs. Shinsegae Engineering Construction | Busan Ind vs. RF Materials Co | Busan Ind vs. Top Material Co |
| SSR vs. Dongbu Insurance Co | SSR vs. Ilji Technology Co | SSR vs. Dongil Metal Co | SSR vs. Guyoung Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |