Correlation Between Sangsin Energy and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and PJ 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 PJ 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 PJ Metal Co, you can compare the effects of market volatilities on Sangsin Energy and PJ 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and PJ Metal.
Diversification Opportunities for Sangsin Energy and PJ Metal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and 128660 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and PJ Metal go up and down completely randomly.
Pair Corralation between Sangsin Energy and PJ Metal
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the PJ Metal. In addition to that, Sangsin Energy is 1.52 times more volatile than PJ Metal Co. It trades about -0.52 of its total potential returns per unit of risk. PJ Metal Co is currently generating about -0.24 per unit of volatility. If you would invest 323,500 in PJ Metal Co on September 4, 2024 and sell it today you would lose (29,000) from holding PJ Metal Co or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. PJ Metal Co
Performance |
| Timeline |
| Sangsin Energy Display |
| PJ Metal |
Sangsin Energy and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and PJ Metal
The main advantage of trading using opposite Sangsin Energy and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, PJ 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Sangsin Energy vs. InfoBank | Sangsin Energy vs. Ssangyong Information Communication | Sangsin Energy vs. Daou Data Corp | Sangsin Energy vs. KB Financial Group |
| PJ Metal vs. Hyundai Green Food | PJ Metal vs. Seoul Food Industrial | PJ Metal vs. CU Medical Systems | PJ Metal vs. Samyang Foods 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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