Correlation Between Sangsin Energy and HB Technology
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and HB Technology 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 HB Technology 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 HB Technology TD, you can compare the effects of market volatilities on Sangsin Energy and HB Technology 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 HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and HB Technology.
Diversification Opportunities for Sangsin Energy and HB Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and 078150 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD 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 HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and HB Technology go up and down completely randomly.
Pair Corralation between Sangsin Energy and HB Technology
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the HB Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.25 times less risky than HB Technology. The stock trades about -0.52 of its potential returns per unit of risk. The HB Technology TD is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 226,000 in HB Technology TD on September 3, 2024 and sell it today you would lose (36,500) from holding HB Technology TD or give up 16.15% 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. HB Technology TD
Performance |
| Timeline |
| Sangsin Energy Display |
| HB Technology TD |
Sangsin Energy and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and HB Technology
The main advantage of trading using opposite Sangsin Energy and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology's long position.| Sangsin Energy vs. LG Display | Sangsin Energy vs. Hyundai Motor | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor Co |
| HB Technology vs. Dongsin Engineering Construction | HB Technology vs. Doosan Fuel Cell | HB Technology vs. Daishin Balance 1 | HB Technology vs. Total Soft Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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