Correlation Between Sangsin Energy and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Bosung Power 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 Sangsin Energy and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Bosung Power Technology, you can compare the effects of market volatilities on Sangsin Energy and Bosung Power 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 Sangsin Energy with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Bosung Power.
Diversification Opportunities for Sangsin Energy and Bosung Power
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sangsin and Bosung is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and Sangsin Energy 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 Sangsin Energy Display are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Bosung Power go up and down completely randomly.
Pair Corralation between Sangsin Energy and Bosung Power
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Bosung Power. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.45 times less risky than Bosung Power. The stock trades about -0.11 of its potential returns per unit of risk. The Bosung Power Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 324,000 in Bosung Power Technology on August 25, 2024 and sell it today you would lose (24,000) from holding Bosung Power Technology or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Bosung Power Technology
Performance |
| Timeline |
| Sangsin Energy Display |
| Bosung Power Technology |
Sangsin Energy and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Bosung Power
The main advantage of trading using opposite Sangsin Energy and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor |
| Bosung Power vs. Samsung Electronics Co | Bosung Power vs. Samsung Electronics Co | Bosung Power vs. Hyundai Motor Co | Bosung Power vs. Hyundai Motor |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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