Correlation Between Sangsin Energy and A-Tech Solution
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and A-Tech Solution 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 A-Tech Solution 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 A Tech Solution Co, you can compare the effects of market volatilities on Sangsin Energy and A-Tech Solution 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 A-Tech Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and A-Tech Solution.
Diversification Opportunities for Sangsin Energy and A-Tech Solution
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and A-Tech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and A Tech Solution Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Tech Solution 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 A-Tech Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Tech Solution has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and A-Tech Solution go up and down completely randomly.
Pair Corralation between Sangsin Energy and A-Tech Solution
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the A-Tech Solution. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.12 times less risky than A-Tech Solution. The stock trades about -0.15 of its potential returns per unit of risk. The A Tech Solution Co is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 585,000 in A Tech Solution Co on September 13, 2024 and sell it today you would lose (63,000) from holding A Tech Solution Co or give up 10.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. A Tech Solution Co
Performance |
| Timeline |
| Sangsin Energy Display |
| A Tech Solution |
Sangsin Energy and A-Tech Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and A-Tech Solution
The main advantage of trading using opposite Sangsin Energy and A-Tech Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, A-Tech Solution 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 A-Tech Solution will offset losses from the drop in A-Tech Solution's long position.| Sangsin Energy vs. Korea New Network | Sangsin Energy vs. Solution Advanced Technology | Sangsin Energy vs. Busan Industrial Co | Sangsin Energy vs. Busan Ind |
| A-Tech Solution vs. Korea New Network | A-Tech Solution vs. Solution Advanced Technology | A-Tech Solution vs. Busan Industrial Co | A-Tech Solution vs. Busan Ind |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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