Correlation Between Sangsin Energy and Ezwelfare
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Ezwelfare 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 Ezwelfare 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 Ezwelfare Co, you can compare the effects of market volatilities on Sangsin Energy and Ezwelfare 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 Ezwelfare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Ezwelfare.
Diversification Opportunities for Sangsin Energy and Ezwelfare
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sangsin and Ezwelfare is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Ezwelfare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ezwelfare 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 Ezwelfare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ezwelfare has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Ezwelfare go up and down completely randomly.
Pair Corralation between Sangsin Energy and Ezwelfare
Assuming the 90 days trading horizon Sangsin Energy Display is expected to generate 2.87 times more return on investment than Ezwelfare. However, Sangsin Energy is 2.87 times more volatile than Ezwelfare Co. It trades about 0.0 of its potential returns per unit of risk. Ezwelfare Co is currently generating about -0.25 per unit of risk. If you would invest 766,536 in Sangsin Energy Display on October 24, 2024 and sell it today you would lose (6,536) from holding Sangsin Energy Display or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Ezwelfare Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Ezwelfare |
Sangsin Energy and Ezwelfare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Ezwelfare
The main advantage of trading using opposite Sangsin Energy and Ezwelfare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Ezwelfare 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 Ezwelfare will offset losses from the drop in Ezwelfare's long position.| Sangsin Energy vs. KTB Investment Securities | Sangsin Energy vs. Daishin Information Communications | Sangsin Energy vs. Woori Technology Investment | Sangsin Energy vs. GS Retail Co |
| Ezwelfare vs. Iljin Display | Ezwelfare vs. GS Retail Co | Ezwelfare vs. Sangsin Energy Display | Ezwelfare vs. Alton Sports CoLtd |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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