Correlation Between Sangsin Energy and Tway Air
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Tway Air 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 Tway Air 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 Tway Air Co, you can compare the effects of market volatilities on Sangsin Energy and Tway Air 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 Tway Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Tway Air.
Diversification Opportunities for Sangsin Energy and Tway Air
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsin and Tway is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Tway Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tway Air 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 Tway Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tway Air has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Tway Air go up and down completely randomly.
Pair Corralation between Sangsin Energy and Tway Air
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Tway Air. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.22 times less risky than Tway Air. The stock trades about -0.41 of its potential returns per unit of risk. The Tway Air Co is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 332,000 in Tway Air Co on August 29, 2024 and sell it today you would lose (25,500) from holding Tway Air Co or give up 7.68% 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. Tway Air Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Tway Air |
Sangsin Energy and Tway Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Tway Air
The main advantage of trading using opposite Sangsin Energy and Tway Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Tway Air 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 Tway Air will offset losses from the drop in Tway Air's long position.| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor |
| Tway Air vs. Busan Industrial Co | Tway Air vs. Busan Ind | Tway Air vs. Mirae Asset Daewoo | Tway Air vs. UNISEM 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |