Correlation Between Sangsin Energy and Chorokbaem Healthcare
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Chorokbaem Healthcare 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 Chorokbaem Healthcare 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 Chorokbaem Healthcare Co, you can compare the effects of market volatilities on Sangsin Energy and Chorokbaem Healthcare 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 Chorokbaem Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Chorokbaem Healthcare.
Diversification Opportunities for Sangsin Energy and Chorokbaem Healthcare
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsin and Chorokbaem is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Chorokbaem Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chorokbaem Healthcare 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 Chorokbaem Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chorokbaem Healthcare has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Chorokbaem Healthcare go up and down completely randomly.
Pair Corralation between Sangsin Energy and Chorokbaem Healthcare
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Chorokbaem Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.53 times less risky than Chorokbaem Healthcare. The stock trades about -0.26 of its potential returns per unit of risk. The Chorokbaem Healthcare Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 29,000 in Chorokbaem Healthcare Co on November 7, 2024 and sell it today you would earn a total of 2,700 from holding Chorokbaem Healthcare Co or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sangsin Energy Display vs. Chorokbaem Healthcare Co
Performance |
| Timeline |
| Sangsin Energy Display |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chorokbaem Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sangsin Energy and Chorokbaem Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Chorokbaem Healthcare
The main advantage of trading using opposite Sangsin Energy and Chorokbaem Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Chorokbaem Healthcare 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 Chorokbaem Healthcare will offset losses from the drop in Chorokbaem Healthcare's long position.| Sangsin Energy vs. People Technology | Sangsin Energy vs. Ilji Technology Co | Sangsin Energy vs. Puloon Technology | Sangsin Energy vs. Eagle Veterinary Technology |
| Chorokbaem Healthcare vs. Samsung Electronics Co | Chorokbaem Healthcare vs. Shinhan Financial Group | Chorokbaem Healthcare vs. Hyundai Motor Co | Chorokbaem Healthcare vs. SK Hynix |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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