Correlation Between STCube and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both STCube and Sangsangin Investment 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 STCube and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STCube Inc and Sangsangin Investment Securities, you can compare the effects of market volatilities on STCube and Sangsangin Investment 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 STCube with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of STCube and Sangsangin Investment.
Diversification Opportunities for STCube and Sangsangin Investment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STCube and Sangsangin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding STCube Inc and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and STCube 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 STCube Inc are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of STCube i.e., STCube and Sangsangin Investment go up and down completely randomly.
Pair Corralation between STCube and Sangsangin Investment
Assuming the 90 days trading horizon STCube Inc is expected to generate 3.79 times more return on investment than Sangsangin Investment. However, STCube is 3.79 times more volatile than Sangsangin Investment Securities. It trades about 0.0 of its potential returns per unit of risk. Sangsangin Investment Securities is currently generating about -0.16 per unit of risk. If you would invest 833,207 in STCube Inc on September 14, 2024 and sell it today you would lose (256,207) from holding STCube Inc or give up 30.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
STCube Inc vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| STCube Inc |
| Sangsangin Investment |
STCube and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STCube and Sangsangin Investment
The main advantage of trading using opposite STCube and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STCube position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| STCube vs. Sangsangin Investment Securities | STCube vs. Aprogen Healthcare Games | STCube vs. SS TECH | STCube vs. Lion Chemtech Co |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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