Correlation Between Seoul Semiconductor and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Seoul Semiconductor 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 Seoul Semiconductor and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Semiconductor Co and Sung Bo Chemicals, you can compare the effects of market volatilities on Seoul Semiconductor 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 Seoul Semiconductor with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Semiconductor and Sung Bo.
Diversification Opportunities for Seoul Semiconductor and Sung Bo
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seoul and Sung is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Semiconductor Co 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 Seoul Semiconductor 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 Seoul Semiconductor Co 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 Seoul Semiconductor i.e., Seoul Semiconductor and Sung Bo go up and down completely randomly.
Pair Corralation between Seoul Semiconductor and Sung Bo
Assuming the 90 days trading horizon Seoul Semiconductor Co is expected to under-perform the Sung Bo. In addition to that, Seoul Semiconductor is 1.28 times more volatile than Sung Bo Chemicals. It trades about -0.03 of its total potential returns per unit of risk. Sung Bo Chemicals is currently generating about -0.02 per unit of volatility. If you would invest 303,878 in Sung Bo Chemicals on September 12, 2024 and sell it today you would lose (49,878) from holding Sung Bo Chemicals or give up 16.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Semiconductor Co vs. Sung Bo Chemicals
Performance |
| Timeline |
| Seoul Semiconductor |
| Sung Bo Chemicals |
Seoul Semiconductor and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Semiconductor and Sung Bo
The main advantage of trading using opposite Seoul Semiconductor and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Semiconductor 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.| Seoul Semiconductor vs. Cube Entertainment | Seoul Semiconductor vs. Dreamus Company | Seoul Semiconductor vs. LG Energy Solution | Seoul Semiconductor vs. Dongwon System |
| Sung Bo vs. LS Materials | Sung Bo vs. Organic Special Pet | Sung Bo vs. Hyundai Engineering Plastics | Sung Bo vs. Phoenix Materials 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |