Correlation Between Sangsin Energy and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Mgame Corp 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 Mgame Corp 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 Mgame Corp, you can compare the effects of market volatilities on Sangsin Energy and Mgame Corp 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 Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Mgame Corp.
Diversification Opportunities for Sangsin Energy and Mgame Corp
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sangsin and Mgame is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame Corp 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 Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Mgame Corp go up and down completely randomly.
Pair Corralation between Sangsin Energy and Mgame Corp
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Mgame Corp. In addition to that, Sangsin Energy is 1.29 times more volatile than Mgame Corp. It trades about -0.04 of its total potential returns per unit of risk. Mgame Corp is currently generating about -0.03 per unit of volatility. If you would invest 840,068 in Mgame Corp on September 2, 2024 and sell it today you would lose (299,068) from holding Mgame Corp or give up 35.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sangsin Energy Display vs. Mgame Corp
Performance |
| Timeline |
| Sangsin Energy Display |
| Mgame Corp |
Sangsin Energy and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Mgame Corp
The main advantage of trading using opposite Sangsin Energy and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp's long position.| Sangsin Energy vs. Korea New Network | Sangsin Energy vs. ICD Co | Sangsin Energy vs. DYPNF CoLtd | Sangsin Energy vs. Busan Industrial Co |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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