Correlation Between Sangsin Energy and Imarketkorea
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Imarketkorea 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 Imarketkorea 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 Imarketkorea, you can compare the effects of market volatilities on Sangsin Energy and Imarketkorea 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 Imarketkorea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Imarketkorea.
Diversification Opportunities for Sangsin Energy and Imarketkorea
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sangsin and Imarketkorea is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Imarketkorea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imarketkorea 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 Imarketkorea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imarketkorea has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Imarketkorea go up and down completely randomly.
Pair Corralation between Sangsin Energy and Imarketkorea
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Imarketkorea. In addition to that, Sangsin Energy is 3.0 times more volatile than Imarketkorea. It trades about -0.11 of its total potential returns per unit of risk. Imarketkorea is currently generating about -0.02 per unit of volatility. If you would invest 873,274 in Imarketkorea on September 12, 2024 and sell it today you would lose (63,274) from holding Imarketkorea or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Sangsin Energy Display vs. Imarketkorea
Performance |
| Timeline |
| Sangsin Energy Display |
| Imarketkorea |
Sangsin Energy and Imarketkorea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Imarketkorea
The main advantage of trading using opposite Sangsin Energy and Imarketkorea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Imarketkorea 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 Imarketkorea will offset losses from the drop in Imarketkorea's long position.| Sangsin Energy vs. A Tech Solution Co | Sangsin Energy vs. Daedong Steel Co | Sangsin Energy vs. PH Tech Co | Sangsin Energy vs. Cots Technology Co |
| Imarketkorea vs. DB Insurance Co | Imarketkorea vs. Dgb Financial | Imarketkorea vs. InfoBank | Imarketkorea vs. KB Financial Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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