Correlation Between AnterogenCoLtd and Sang A
Can any of the company-specific risk be diversified away by investing in both AnterogenCoLtd and Sang A 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 AnterogenCoLtd and Sang A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AnterogenCoLtd and Sang A Frontec CoLtd, you can compare the effects of market volatilities on AnterogenCoLtd and Sang A 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 AnterogenCoLtd with a short position of Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of AnterogenCoLtd and Sang A.
Diversification Opportunities for AnterogenCoLtd and Sang A
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AnterogenCoLtd and Sang is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding AnterogenCoLtd and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec and AnterogenCoLtd 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 AnterogenCoLtd are associated (or correlated) with Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of AnterogenCoLtd i.e., AnterogenCoLtd and Sang A go up and down completely randomly.
Pair Corralation between AnterogenCoLtd and Sang A
Assuming the 90 days trading horizon AnterogenCoLtd is expected to generate 1.67 times more return on investment than Sang A. However, AnterogenCoLtd is 1.67 times more volatile than Sang A Frontec CoLtd. It trades about 0.06 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.03 per unit of risk. If you would invest 1,520,000 in AnterogenCoLtd on September 25, 2024 and sell it today you would earn a total of 50,000 from holding AnterogenCoLtd or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AnterogenCoLtd vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| AnterogenCoLtd |
| Sang A Frontec |
AnterogenCoLtd and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AnterogenCoLtd and Sang A
The main advantage of trading using opposite AnterogenCoLtd and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AnterogenCoLtd position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| AnterogenCoLtd vs. Kolon Life Science | AnterogenCoLtd vs. JETEMA Co | AnterogenCoLtd vs. Aminologics CoLtd | AnterogenCoLtd vs. HLB Pharmaceutical Co |
| Sang A vs. Sangshin Electronics Co | Sang A vs. Daewon Media Co | Sang A vs. FNC Entertainment Co | Sang A vs. Shinil 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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