Correlation Between Ssangyong Materials and TOPMATERIAL
Can any of the company-specific risk be diversified away by investing in both Ssangyong Materials and TOPMATERIAL 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 Ssangyong Materials and TOPMATERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Materials Corp and TOPMATERIAL LTD, you can compare the effects of market volatilities on Ssangyong Materials and TOPMATERIAL 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 Ssangyong Materials with a short position of TOPMATERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Materials and TOPMATERIAL.
Diversification Opportunities for Ssangyong Materials and TOPMATERIAL
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and TOPMATERIAL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Materials Corp and TOPMATERIAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPMATERIAL LTD and Ssangyong Materials 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 Ssangyong Materials Corp are associated (or correlated) with TOPMATERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPMATERIAL LTD has no effect on the direction of Ssangyong Materials i.e., Ssangyong Materials and TOPMATERIAL go up and down completely randomly.
Pair Corralation between Ssangyong Materials and TOPMATERIAL
Assuming the 90 days trading horizon Ssangyong Materials Corp is expected to generate 0.98 times more return on investment than TOPMATERIAL. However, Ssangyong Materials Corp is 1.02 times less risky than TOPMATERIAL. It trades about 0.08 of its potential returns per unit of risk. TOPMATERIAL LTD is currently generating about -0.2 per unit of risk. If you would invest 211,500 in Ssangyong Materials Corp on September 2, 2024 and sell it today you would earn a total of 27,500 from holding Ssangyong Materials Corp or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Materials Corp vs. TOPMATERIAL LTD
Performance |
| Timeline |
| Ssangyong Materials Corp |
| TOPMATERIAL LTD |
Ssangyong Materials and TOPMATERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Materials and TOPMATERIAL
The main advantage of trading using opposite Ssangyong Materials and TOPMATERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Materials position performs unexpectedly, TOPMATERIAL 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 TOPMATERIAL will offset losses from the drop in TOPMATERIAL's long position.| Ssangyong Materials vs. AptaBio Therapeutics | Ssangyong Materials vs. Daewoo SBI SPAC | Ssangyong Materials vs. Dream Security co | Ssangyong Materials vs. Microfriend |
| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL vs. SK Hynix |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |