Correlation Between Sungwoo Electronics and SV Investment
Can any of the company-specific risk be diversified away by investing in both Sungwoo Electronics and SV Investment 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 Sungwoo Electronics and SV Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungwoo Electronics Co and SV Investment, you can compare the effects of market volatilities on Sungwoo Electronics and SV Investment 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 Sungwoo Electronics with a short position of SV Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungwoo Electronics and SV Investment.
Diversification Opportunities for Sungwoo Electronics and SV Investment
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sungwoo and 289080 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sungwoo Electronics Co and SV Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SV Investment and Sungwoo Electronics 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 Sungwoo Electronics Co are associated (or correlated) with SV Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SV Investment has no effect on the direction of Sungwoo Electronics i.e., Sungwoo Electronics and SV Investment go up and down completely randomly.
Pair Corralation between Sungwoo Electronics and SV Investment
Assuming the 90 days trading horizon Sungwoo Electronics Co is expected to generate 1.09 times more return on investment than SV Investment. However, Sungwoo Electronics is 1.09 times more volatile than SV Investment. It trades about 0.12 of its potential returns per unit of risk. SV Investment is currently generating about -0.03 per unit of risk. If you would invest 213,500 in Sungwoo Electronics Co on August 24, 2024 and sell it today you would earn a total of 216,500 from holding Sungwoo Electronics Co or generate 101.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
Sungwoo Electronics Co vs. SV Investment
Performance |
| Timeline |
| Sungwoo Electronics |
| SV Investment |
Sungwoo Electronics and SV Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungwoo Electronics and SV Investment
The main advantage of trading using opposite Sungwoo Electronics and SV Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungwoo Electronics position performs unexpectedly, SV Investment 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 SV Investment will offset losses from the drop in SV Investment's long position.| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics vs. Microfriend |
| SV Investment vs. Aprogen Healthcare Games | SV Investment vs. SM Entertainment Co | SV Investment vs. KIWI Media Group | SV Investment vs. Digital Multimedia Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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