Correlation Between Sangsin Energy and Dongil Metal
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Dongil Metal 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 Dongil Metal 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 Dongil Metal Co, you can compare the effects of market volatilities on Sangsin Energy and Dongil Metal 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 Dongil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Dongil Metal.
Diversification Opportunities for Sangsin Energy and Dongil Metal
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sangsin and Dongil is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Dongil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Metal 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 Dongil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Metal has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Dongil Metal go up and down completely randomly.
Pair Corralation between Sangsin Energy and Dongil Metal
Assuming the 90 days trading horizon Sangsin Energy Display is expected to generate 0.9 times more return on investment than Dongil Metal. However, Sangsin Energy Display is 1.11 times less risky than Dongil Metal. It trades about -0.08 of its potential returns per unit of risk. Dongil Metal Co is currently generating about -0.11 per unit of risk. If you would invest 1,905,644 in Sangsin Energy Display on August 31, 2024 and sell it today you would lose (1,109,644) from holding Sangsin Energy Display or give up 58.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.96% |
| Values | Daily Returns |
Sangsin Energy Display vs. Dongil Metal Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Dongil Metal |
Sangsin Energy and Dongil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Dongil Metal
The main advantage of trading using opposite Sangsin Energy and Dongil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Dongil Metal 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 Dongil Metal will offset losses from the drop in Dongil Metal's long position.| Sangsin Energy vs. Korea New Network | Sangsin Energy vs. ICD Co | Sangsin Energy vs. DYPNF CoLtd | Sangsin Energy vs. Busan Industrial Co |
| Dongil Metal vs. LG Chemicals | Dongil Metal vs. POSCO Holdings | Dongil Metal vs. Hanwha Solutions | Dongil Metal vs. Lotte Chemical Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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