Correlation Between Ssangyong Materials and Organic Special
Can any of the company-specific risk be diversified away by investing in both Ssangyong Materials and Organic Special 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 Organic Special 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 Organic Special Pet, you can compare the effects of market volatilities on Ssangyong Materials and Organic Special 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 Organic Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Materials and Organic Special.
Diversification Opportunities for Ssangyong Materials and Organic Special
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ssangyong and Organic is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Materials Corp and Organic Special Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Organic Special Pet 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 Organic Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Organic Special Pet has no effect on the direction of Ssangyong Materials i.e., Ssangyong Materials and Organic Special go up and down completely randomly.
Pair Corralation between Ssangyong Materials and Organic Special
Assuming the 90 days trading horizon Ssangyong Materials Corp is expected to generate 1.35 times more return on investment than Organic Special. However, Ssangyong Materials is 1.35 times more volatile than Organic Special Pet. It trades about 0.14 of its potential returns per unit of risk. Organic Special Pet is currently generating about -0.2 per unit of risk. If you would invest 229,500 in Ssangyong Materials Corp on October 12, 2024 and sell it today you would earn a total of 12,000 from holding Ssangyong Materials Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Materials Corp vs. Organic Special Pet
Performance |
| Timeline |
| Ssangyong Materials Corp |
| Organic Special Pet |
Ssangyong Materials and Organic Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Materials and Organic Special
The main advantage of trading using opposite Ssangyong Materials and Organic Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Materials position performs unexpectedly, Organic Special 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 Organic Special will offset losses from the drop in Organic Special's long position.| Ssangyong Materials vs. PJ Metal Co | Ssangyong Materials vs. Samyang Foods Co | Ssangyong Materials vs. Innowireless Co | Ssangyong Materials vs. Dongbang Transport Logistics |
| Organic Special vs. NewFlex Technology Co | Organic Special vs. ITM Semiconductor Co | Organic Special vs. ENF Technology Co | Organic Special vs. Hwangkum Steel Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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