Correlation Between Seoul Electronics and SS TECH
Can any of the company-specific risk be diversified away by investing in both Seoul Electronics and SS TECH 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 Seoul Electronics and SS TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Electronics Telecom and SS TECH, you can compare the effects of market volatilities on Seoul Electronics and SS TECH 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 Seoul Electronics with a short position of SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Electronics and SS TECH.
Diversification Opportunities for Seoul Electronics and SS TECH
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seoul and 101490 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Electronics Telecom and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH and Seoul Electronics 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 Seoul Electronics Telecom are associated (or correlated) with SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Seoul Electronics i.e., Seoul Electronics and SS TECH go up and down completely randomly.
Pair Corralation between Seoul Electronics and SS TECH
Assuming the 90 days trading horizon Seoul Electronics Telecom is expected to under-perform the SS TECH. But the stock apears to be less risky and, when comparing its historical volatility, Seoul Electronics Telecom is 1.46 times less risky than SS TECH. The stock trades about -0.09 of its potential returns per unit of risk. The SS TECH is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,639,196 in SS TECH on November 2, 2024 and sell it today you would earn a total of 450,804 from holding SS TECH or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Electronics Telecom vs. SS TECH
Performance |
| Timeline |
| Seoul Electronics Telecom |
| SS TECH |
Seoul Electronics and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Electronics and SS TECH
The main advantage of trading using opposite Seoul Electronics and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Electronics position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH's long position.| Seoul Electronics vs. Kaonmedia Co | Seoul Electronics vs. SAMG Entertainment Co | Seoul Electronics vs. Korea Shipbuilding Offshore | Seoul Electronics vs. Korea Investment Holdings |
| SS TECH vs. Samsung Electronics Co | SS TECH vs. Samsung Electronics Co | SS TECH vs. SK Hynix | SS TECH vs. HMM 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |