Correlation Between Sungchang Autotech and Prestige Biologics
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech and Prestige Biologics 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 Prestige Biologics 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 Prestige Biologics Co, you can compare the effects of market volatilities on Sungchang Autotech and Prestige Biologics 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 Prestige Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Prestige Biologics.
Diversification Opportunities for Sungchang Autotech and Prestige Biologics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sungchang and Prestige is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co and Prestige Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prestige Biologics 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 Prestige Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prestige Biologics has no effect on the direction of Sungchang Autotech i.e., Sungchang Autotech and Prestige Biologics go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Prestige Biologics
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to generate 0.81 times more return on investment than Prestige Biologics. However, Sungchang Autotech Co is 1.23 times less risky than Prestige Biologics. It trades about -0.34 of its potential returns per unit of risk. Prestige Biologics Co is currently generating about -0.3 per unit of risk. If you would invest 463,500 in Sungchang Autotech Co on September 3, 2024 and sell it today you would lose (79,000) from holding Sungchang Autotech Co or give up 17.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungchang Autotech Co vs. Prestige Biologics Co
Performance |
| Timeline |
| Sungchang Autotech |
| Prestige Biologics |
Sungchang Autotech and Prestige Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and Prestige Biologics
The main advantage of trading using opposite Sungchang Autotech and Prestige Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech position performs unexpectedly, Prestige Biologics 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 Prestige Biologics will offset losses from the drop in Prestige Biologics' long position.| Sungchang Autotech vs. Korea Real Estate | Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. UNISEM Co | Sungchang Autotech vs. RPBio Inc |
| Prestige Biologics vs. Samsung Biologics Co | Prestige Biologics vs. SK Bioscience Co | Prestige Biologics vs. Sk Biopharmaceuticals Co | Prestige Biologics vs. ABL Bio |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |