Correlation Between Sungchang Autotech and PH Tech
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech and PH Tech 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 Sungchang Autotech and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and PH Tech Co, you can compare the effects of market volatilities on Sungchang Autotech and PH Tech 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 Sungchang Autotech with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and PH Tech.
Diversification Opportunities for Sungchang Autotech and PH Tech
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sungchang and 239890 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and Sungchang Autotech 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 Sungchang Autotech Co are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Sungchang Autotech i.e., Sungchang Autotech and PH Tech go up and down completely randomly.
Pair Corralation between Sungchang Autotech and PH Tech
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to generate 0.6 times more return on investment than PH Tech. However, Sungchang Autotech Co is 1.66 times less risky than PH Tech. It trades about -0.06 of its potential returns per unit of risk. PH Tech Co is currently generating about -0.04 per unit of risk. If you would invest 730,279 in Sungchang Autotech Co on November 27, 2024 and sell it today you would lose (361,279) from holding Sungchang Autotech Co or give up 49.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungchang Autotech Co vs. PH Tech Co
Performance |
| Timeline |
| Sungchang Autotech |
| PH Tech |
Sungchang Autotech and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and PH Tech
The main advantage of trading using opposite Sungchang Autotech and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Sungchang Autotech vs. Cots Technology Co | Sungchang Autotech vs. Echomarketing CoLtd | Sungchang Autotech vs. GS Retail Co | Sungchang Autotech vs. Adaptive Plasma Technology |
| PH Tech vs. Sungmoon Electronics Co | PH Tech vs. Daejoo Electronic Materials | PH Tech vs. Samyoung Electronics Co | PH Tech vs. Heungkuk Metaltech CoLtd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |