Correlation Between Sejong Telecom and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Sejong Telecom 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 Sejong Telecom and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sejong Telecom and Ssangyong Information Communication, you can compare the effects of market volatilities on Sejong Telecom 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 Sejong Telecom with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejong Telecom and Ssangyong Information.
Diversification Opportunities for Sejong Telecom and Ssangyong Information
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sejong and Ssangyong is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sejong Telecom and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Sejong Telecom 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 Sejong Telecom 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 Sejong Telecom i.e., Sejong Telecom and Ssangyong Information go up and down completely randomly.
Pair Corralation between Sejong Telecom and Ssangyong Information
Assuming the 90 days trading horizon Sejong Telecom is expected to generate 1.12 times more return on investment than Ssangyong Information. However, Sejong Telecom is 1.12 times more volatile than Ssangyong Information Communication. It trades about 0.11 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.02 per unit of risk. If you would invest 40,500 in Sejong Telecom on October 27, 2024 and sell it today you would earn a total of 1,000.00 from holding Sejong Telecom or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sejong Telecom vs. Ssangyong Information Communic
Performance |
| Timeline |
| Sejong Telecom |
| Ssangyong Information |
Sejong Telecom and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejong Telecom and Ssangyong Information
The main advantage of trading using opposite Sejong Telecom and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejong Telecom 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.| Sejong Telecom vs. Sam Chun Dang | Sejong Telecom vs. SAMRYOONG CoLtd | Sejong Telecom vs. BYON Co | Sejong Telecom vs. Sangsangin Co |
| Ssangyong Information vs. DRB Industrial Co | Ssangyong Information vs. Lotte Data Communication | Ssangyong Information vs. Korea Information Communications | Ssangyong Information vs. Seoyon Topmetal 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |