Correlation Between Sungwoo Hitech and SFA Semicon
Can any of the company-specific risk be diversified away by investing in both Sungwoo Hitech and SFA Semicon 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 Sungwoo Hitech and SFA Semicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungwoo Hitech Co and SFA Semicon Co, you can compare the effects of market volatilities on Sungwoo Hitech and SFA Semicon 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 Sungwoo Hitech with a short position of SFA Semicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungwoo Hitech and SFA Semicon.
Diversification Opportunities for Sungwoo Hitech and SFA Semicon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sungwoo and SFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sungwoo Hitech Co and SFA Semicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFA Semicon and Sungwoo Hitech 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 Sungwoo Hitech Co are associated (or correlated) with SFA Semicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFA Semicon has no effect on the direction of Sungwoo Hitech i.e., Sungwoo Hitech and SFA Semicon go up and down completely randomly.
Pair Corralation between Sungwoo Hitech and SFA Semicon
If you would invest 0.00 in Sungwoo Hitech Co on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sungwoo Hitech Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.72% |
| Values | Daily Returns |
Sungwoo Hitech Co vs. SFA Semicon Co
Performance |
| Timeline |
| Sungwoo Hitech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SFA Semicon |
Sungwoo Hitech and SFA Semicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungwoo Hitech and SFA Semicon
The main advantage of trading using opposite Sungwoo Hitech and SFA Semicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungwoo Hitech position performs unexpectedly, SFA Semicon 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 SFA Semicon will offset losses from the drop in SFA Semicon's long position.| Sungwoo Hitech vs. Soulbrain Holdings Co | Sungwoo Hitech vs. Posco ICT | Sungwoo Hitech vs. SFA Engineering | Sungwoo Hitech vs. Tae Kwang |
| SFA Semicon vs. Korea Real Estate | SFA Semicon vs. Korea Ratings Co | SFA Semicon vs. IQuest Co | SFA Semicon vs. Wonbang Tech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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