Correlation Between Mobile Appliance and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance 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 Mobile Appliance and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Appliance and Ssangyong Information Communication, you can compare the effects of market volatilities on Mobile Appliance 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 Mobile Appliance with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and Ssangyong Information.
Diversification Opportunities for Mobile Appliance and Ssangyong Information
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mobile and Ssangyong is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance i.e., Mobile Appliance and Ssangyong Information go up and down completely randomly.
Pair Corralation between Mobile Appliance and Ssangyong Information
Assuming the 90 days trading horizon Mobile Appliance is expected to generate 1.92 times more return on investment than Ssangyong Information. However, Mobile Appliance is 1.92 times more volatile than Ssangyong Information Communication. It trades about -0.01 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.03 per unit of risk. If you would invest 319,000 in Mobile Appliance on September 4, 2024 and sell it today you would lose (105,500) from holding Mobile Appliance or give up 33.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Appliance vs. Ssangyong Information Communic
Performance |
| Timeline |
| Mobile Appliance |
| Ssangyong Information |
Mobile Appliance and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and Ssangyong Information
The main advantage of trading using opposite Mobile Appliance and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance 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.| Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. LG Energy Solution | Mobile Appliance vs. SK Hynix |
| Ssangyong Information vs. Cafe24 Corp | Ssangyong Information vs. Korea Computer Systems | Ssangyong Information vs. SSR Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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