Correlation Between Sangsin Energy and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and KTB 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 Sangsin Energy and KTB Investment 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 KTB Investment Securities, you can compare the effects of market volatilities on Sangsin Energy and KTB 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 Sangsin Energy with a short position of KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and KTB Investment.
Diversification Opportunities for Sangsin Energy and KTB Investment
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sangsin and KTB is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and KTB Investment go up and down completely randomly.
Pair Corralation between Sangsin Energy and KTB Investment
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the KTB Investment. In addition to that, Sangsin Energy is 1.25 times more volatile than KTB Investment Securities. It trades about -0.11 of its total potential returns per unit of risk. KTB Investment Securities is currently generating about -0.02 per unit of volatility. If you would invest 341,489 in KTB Investment Securities on November 4, 2024 and sell it today you would lose (49,489) from holding KTB Investment Securities or give up 14.49% 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. KTB Investment Securities
Performance |
| Timeline |
| Sangsin Energy Display |
| KTB Investment Securities |
Sangsin Energy and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and KTB Investment
The main advantage of trading using opposite Sangsin Energy and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, KTB 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Sangsin Energy vs. Daishin Information Communications | Sangsin Energy vs. Iljin Display | Sangsin Energy vs. SungMoon Electronics Co | Sangsin Energy vs. Jahwa Electronics Co |
| KTB Investment vs. E Investment Development | KTB Investment vs. Hanmi Semiconductor Co | KTB Investment vs. Hannong Chemicals | KTB Investment vs. LB Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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