Correlation Between STCube and Sangsangin
Can any of the company-specific risk be diversified away by investing in both STCube and Sangsangin 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 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 Co, you can compare the effects of market volatilities on STCube and Sangsangin 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of STCube and Sangsangin.
Diversification Opportunities for STCube and Sangsangin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STCube and Sangsangin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding STCube Inc and Sangsangin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin has no effect on the direction of STCube i.e., STCube and Sangsangin go up and down completely randomly.
Pair Corralation between STCube and Sangsangin
Assuming the 90 days trading horizon STCube Inc is expected to generate 2.52 times more return on investment than Sangsangin. However, STCube is 2.52 times more volatile than Sangsangin Co. It trades about 0.07 of its potential returns per unit of risk. Sangsangin Co is currently generating about -0.15 per unit of risk. If you would invest 565,292 in STCube Inc on November 3, 2024 and sell it today you would earn a total of 394,708 from holding STCube Inc or generate 69.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STCube Inc vs. Sangsangin Co
Performance |
| Timeline |
| STCube Inc |
| Sangsangin |
STCube and Sangsangin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STCube and Sangsangin
The main advantage of trading using opposite STCube and Sangsangin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STCube position performs unexpectedly, Sangsangin 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 will offset losses from the drop in Sangsangin's long position.| STCube vs. Nable Communications | STCube vs. Hana Materials | STCube vs. Digital Power Communications | STCube vs. Hyosung Advanced Materials |
| Sangsangin vs. Soulbrain Holdings Co | Sangsangin vs. SFA Engineering | Sangsangin vs. AfreecaTV Co | Sangsangin vs. STCube Inc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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