Correlation Between Shinsegae Information and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Sung Bo 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 Shinsegae Information and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Sung Bo Chemicals, you can compare the effects of market volatilities on Shinsegae Information and Sung Bo 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 Shinsegae Information with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Sung Bo.
Diversification Opportunities for Shinsegae Information and Sung Bo
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinsegae and Sung is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals and Shinsegae Information 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 Shinsegae Information Communication are associated (or correlated) with Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Sung Bo go up and down completely randomly.
Pair Corralation between Shinsegae Information and Sung Bo
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Sung Bo. But the stock apears to be less risky and, when comparing its historical volatility, Shinsegae Information Communication is 1.01 times less risky than Sung Bo. The stock trades about -0.04 of its potential returns per unit of risk. The Sung Bo Chemicals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 266,132 in Sung Bo Chemicals on August 25, 2024 and sell it today you would lose (12,632) from holding Sung Bo Chemicals or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Sung Bo Chemicals
Performance |
| Timeline |
| Shinsegae Information |
| Sung Bo Chemicals |
Shinsegae Information and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Sung Bo
The main advantage of trading using opposite Shinsegae Information and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Sung Bo vs. AptaBio Therapeutics | Sung Bo vs. Daewoo SBI SPAC | Sung Bo vs. Dream Security co | Sung Bo 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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