Correlation Between INtRON Biotechnology and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Sangsin Energy 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 INtRON Biotechnology and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Sangsin Energy Display, you can compare the effects of market volatilities on INtRON Biotechnology and Sangsin Energy 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 INtRON Biotechnology with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Sangsin Energy.
Diversification Opportunities for INtRON Biotechnology and Sangsin Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INtRON and Sangsin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Sangsin Energy go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Sangsin Energy
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 0.59 times more return on investment than Sangsin Energy. However, iNtRON Biotechnology is 1.7 times less risky than Sangsin Energy. It trades about -0.07 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.19 per unit of risk. If you would invest 577,000 in iNtRON Biotechnology on November 8, 2024 and sell it today you would lose (15,000) from holding iNtRON Biotechnology or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Sangsin Energy Display
Performance |
| Timeline |
| iNtRON Biotechnology |
| Sangsin Energy Display |
INtRON Biotechnology and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Sangsin Energy
The main advantage of trading using opposite INtRON Biotechnology and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Sangsin Energy vs. DAEDUCK ELECTRONICS CoLtd | Sangsin Energy vs. Ssangyong Information Communication | Sangsin Energy vs. Daeduck Electronics Co | Sangsin Energy vs. Vissem Electronics 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 Stocks Directory module to find actively traded stocks across global markets.
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