Correlation Between Sangsin Energy and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Sangsin Energy and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Hankukpackage.
Diversification Opportunities for Sangsin Energy and Hankukpackage
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and Hankukpackage is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Hankukpackage go up and down completely randomly.
Pair Corralation between Sangsin Energy and Hankukpackage
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Hankukpackage. In addition to that, Sangsin Energy is 1.63 times more volatile than Hankukpackage Co. It trades about -0.03 of its total potential returns per unit of risk. Hankukpackage Co is currently generating about -0.02 per unit of volatility. If you would invest 237,274 in Hankukpackage Co on September 26, 2024 and sell it today you would lose (60,374) from holding Hankukpackage Co or give up 25.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Hankukpackage Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Hankukpackage |
Sangsin Energy and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Hankukpackage
The main advantage of trading using opposite Sangsin Energy and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Sangsin Energy vs. Busan Industrial Co | Sangsin Energy vs. Busan Ind | Sangsin Energy vs. Mirae Asset Daewoo | Sangsin Energy vs. Shinhan WTI Futures |
| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Naver | Hankukpackage vs. Gyeongnam Steel Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |