Correlation Between Sangsin Energy and RFTech
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and RFTech 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 RFTech 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 RFTech Co, you can compare the effects of market volatilities on Sangsin Energy and RFTech 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 RFTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and RFTech.
Diversification Opportunities for Sangsin Energy and RFTech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sangsin and RFTech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and RFTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFTech 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 RFTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFTech has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and RFTech go up and down completely randomly.
Pair Corralation between Sangsin Energy and RFTech
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the RFTech. In addition to that, Sangsin Energy is 1.36 times more volatile than RFTech Co. It trades about -0.48 of its total potential returns per unit of risk. RFTech Co is currently generating about 0.31 per unit of volatility. If you would invest 301,500 in RFTech Co on September 1, 2024 and sell it today you would earn a total of 41,500 from holding RFTech Co or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. RFTech Co
Performance |
| Timeline |
| Sangsin Energy Display |
| RFTech |
Sangsin Energy and RFTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and RFTech
The main advantage of trading using opposite Sangsin Energy and RFTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, RFTech 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 RFTech will offset losses from the drop in RFTech'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 |
| RFTech vs. Kukil Metal Co | RFTech vs. Osang Healthcare Co,Ltd | RFTech vs. CKH Food Health | RFTech vs. Infinitt Healthcare 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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