Correlation Between Daol Investment and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Daol Investment and Ssangyong Information 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 Daol Investment and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daol Investment Securities and Ssangyong Information Communication, you can compare the effects of market volatilities on Daol Investment and Ssangyong Information 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 Daol Investment with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daol Investment and Ssangyong Information.
Diversification Opportunities for Daol Investment and Ssangyong Information
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daol and Ssangyong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Daol Investment Securities and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Daol 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 Daol Investment Securities are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Daol Investment i.e., Daol Investment and Ssangyong Information go up and down completely randomly.
Pair Corralation between Daol Investment and Ssangyong Information
Assuming the 90 days trading horizon Daol Investment Securities is expected to under-perform the Ssangyong Information. In addition to that, Daol Investment is 1.31 times more volatile than Ssangyong Information Communication. It trades about -0.19 of its total potential returns per unit of risk. Ssangyong Information Communication is currently generating about 0.06 per unit of volatility. If you would invest 60,800 in Ssangyong Information Communication on August 27, 2024 and sell it today you would earn a total of 800.00 from holding Ssangyong Information Communication or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daol Investment Securities vs. Ssangyong Information Communic
Performance |
| Timeline |
| Daol Investment Secu |
| Ssangyong Information |
Daol Investment and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daol Investment and Ssangyong Information
The main advantage of trading using opposite Daol Investment and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daol Investment position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Daol Investment vs. Samsung Electronics Co | Daol Investment vs. Samsung Electronics Co | Daol Investment vs. LG Energy Solution | Daol Investment vs. SK Hynix |
| Ssangyong Information vs. Phoenix Materials Co | Ssangyong Information vs. Handok Clean Tech | Ssangyong Information vs. LAKE MATERIALS LTD | Ssangyong Information vs. Hyosung Advanced Materials |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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