Correlation Between SBI Investment and GS Engineering
Can any of the company-specific risk be diversified away by investing in both SBI Investment and GS Engineering 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 SBI Investment and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Investment KOREA and GS Engineering Construction, you can compare the effects of market volatilities on SBI Investment and GS Engineering 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 SBI Investment with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Investment and GS Engineering.
Diversification Opportunities for SBI Investment and GS Engineering
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBI and 006360 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding SBI Investment KOREA and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and SBI Investment 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 SBI Investment KOREA are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of SBI Investment i.e., SBI Investment and GS Engineering go up and down completely randomly.
Pair Corralation between SBI Investment and GS Engineering
Assuming the 90 days trading horizon SBI Investment KOREA is expected to under-perform the GS Engineering. In addition to that, SBI Investment is 1.09 times more volatile than GS Engineering Construction. It trades about -0.01 of its total potential returns per unit of risk. GS Engineering Construction is currently generating about 0.06 per unit of volatility. If you would invest 1,491,802 in GS Engineering Construction on August 29, 2024 and sell it today you would earn a total of 486,198 from holding GS Engineering Construction or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Investment KOREA vs. GS Engineering Construction
Performance |
| Timeline |
| SBI Investment KOREA |
| GS Engineering Const |
SBI Investment and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Investment and GS Engineering
The main advantage of trading using opposite SBI Investment and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Investment position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| SBI Investment vs. Daekyung Machinery Engineering | SBI Investment vs. PlayD Co | SBI Investment vs. Playgram Co | SBI Investment vs. Camus Engineering Construction |
| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering vs. Microfriend |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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