Correlation Between Kortek and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Kortek and Ssangyong Information 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 Kortek and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kortek and Ssangyong Information Communication, you can compare the effects of market volatilities on Kortek and Ssangyong Information 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 Kortek with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kortek and Ssangyong Information.
Diversification Opportunities for Kortek and Ssangyong Information
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kortek and Ssangyong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kortek and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Kortek 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 Kortek are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Kortek i.e., Kortek and Ssangyong Information go up and down completely randomly.
Pair Corralation between Kortek and Ssangyong Information
Assuming the 90 days trading horizon Kortek is expected to generate 0.95 times more return on investment than Ssangyong Information. However, Kortek is 1.05 times less risky than Ssangyong Information. It trades about 0.06 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.06 per unit of risk. If you would invest 613,267 in Kortek on September 14, 2024 and sell it today you would earn a total of 159,733 from holding Kortek or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kortek vs. Ssangyong Information Communic
Performance |
| Timeline |
| Kortek |
| Ssangyong Information |
Kortek and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kortek and Ssangyong Information
The main advantage of trading using opposite Kortek and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kortek position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Kortek vs. Ssangyong Information Communication | Kortek vs. DAEDUCK ELECTRONICS CoLtd | Kortek vs. BIT Computer Co | Kortek vs. LG Household Healthcare |
| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Solution Advanced Technology | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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