Correlation Between Seohee Construction and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both Seohee Construction and Phoenix Materials 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 Seohee Construction and Phoenix Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seohee Construction Co and Phoenix Materials Co, you can compare the effects of market volatilities on Seohee Construction and Phoenix Materials 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 Seohee Construction with a short position of Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seohee Construction and Phoenix Materials.
Diversification Opportunities for Seohee Construction and Phoenix Materials
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seohee and Phoenix is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Seohee Construction Co and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials and Seohee Construction 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 Seohee Construction Co are associated (or correlated) with Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of Seohee Construction i.e., Seohee Construction and Phoenix Materials go up and down completely randomly.
Pair Corralation between Seohee Construction and Phoenix Materials
Assuming the 90 days trading horizon Seohee Construction Co is expected to generate 0.32 times more return on investment than Phoenix Materials. However, Seohee Construction Co is 3.1 times less risky than Phoenix Materials. It trades about 0.06 of its potential returns per unit of risk. Phoenix Materials Co is currently generating about -0.01 per unit of risk. If you would invest 127,500 in Seohee Construction Co on October 27, 2024 and sell it today you would earn a total of 30,100 from holding Seohee Construction Co or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seohee Construction Co vs. Phoenix Materials Co
Performance |
| Timeline |
| Seohee Construction |
| Phoenix Materials |
Seohee Construction and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seohee Construction and Phoenix Materials
The main advantage of trading using opposite Seohee Construction and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seohee Construction position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' long position.| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
| Phoenix Materials vs. Samsung Electronics Co | Phoenix Materials vs. Samsung Electronics Co | Phoenix Materials vs. SK Hynix | Phoenix Materials 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |