Correlation Between Sangsangin and BYON
Can any of the company-specific risk be diversified away by investing in both Sangsangin and BYON 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 Sangsangin and BYON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Co and BYON Co, you can compare the effects of market volatilities on Sangsangin and BYON 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 Sangsangin with a short position of BYON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin and BYON.
Diversification Opportunities for Sangsangin and BYON
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sangsangin and BYON is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Co and BYON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYON and Sangsangin 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 Sangsangin Co are associated (or correlated) with BYON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYON has no effect on the direction of Sangsangin i.e., Sangsangin and BYON go up and down completely randomly.
Pair Corralation between Sangsangin and BYON
Assuming the 90 days trading horizon Sangsangin Co is expected to generate 0.2 times more return on investment than BYON. However, Sangsangin Co is 4.97 times less risky than BYON. It trades about 0.0 of its potential returns per unit of risk. BYON Co is currently generating about -0.22 per unit of risk. If you would invest 152,300 in Sangsangin Co on October 23, 2024 and sell it today you would lose (500.00) from holding Sangsangin Co or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Co vs. BYON Co
Performance |
| Timeline |
| Sangsangin |
| BYON |
Sangsangin and BYON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin and BYON
The main advantage of trading using opposite Sangsangin and BYON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin position performs unexpectedly, BYON 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 BYON will offset losses from the drop in BYON's long position.| Sangsangin vs. Soulbrain Holdings Co | Sangsangin vs. SFA Engineering | Sangsangin vs. AfreecaTV Co | Sangsangin vs. STCube Inc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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