Correlation Between Sangsin Energy and SNTEnergy
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and SNTEnergy 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 SNTEnergy 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 SNTEnergy Co, you can compare the effects of market volatilities on Sangsin Energy and SNTEnergy 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 SNTEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and SNTEnergy.
Diversification Opportunities for Sangsin Energy and SNTEnergy
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sangsin and SNTEnergy is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and SNTEnergy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNTEnergy 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 SNTEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNTEnergy has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and SNTEnergy go up and down completely randomly.
Pair Corralation between Sangsin Energy and SNTEnergy
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the SNTEnergy. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.52 times less risky than SNTEnergy. The stock trades about -0.15 of its potential returns per unit of risk. The SNTEnergy Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,528,000 in SNTEnergy Co on September 13, 2024 and sell it today you would earn a total of 129,000 from holding SNTEnergy Co or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sangsin Energy Display vs. SNTEnergy Co
Performance |
| Timeline |
| Sangsin Energy Display |
| SNTEnergy |
Sangsin Energy and SNTEnergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and SNTEnergy
The main advantage of trading using opposite Sangsin Energy and SNTEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, SNTEnergy 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 SNTEnergy will offset losses from the drop in SNTEnergy'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 |
| SNTEnergy vs. LG Energy Solution | SNTEnergy vs. Doosan Heavy Ind | SNTEnergy vs. Hyosung Heavy Industries | SNTEnergy vs. Aprogen KIC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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