Correlation Between Sangsin Energy and EV Advanced
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and EV Advanced 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 EV Advanced 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 EV Advanced Material, you can compare the effects of market volatilities on Sangsin Energy and EV Advanced 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 EV Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and EV Advanced.
Diversification Opportunities for Sangsin Energy and EV Advanced
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsin and 131400 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and EV Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Advanced Material 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 EV Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Advanced Material has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and EV Advanced go up and down completely randomly.
Pair Corralation between Sangsin Energy and EV Advanced
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the EV Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 2.07 times less risky than EV Advanced. The stock trades about -0.41 of its potential returns per unit of risk. The EV Advanced Material is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 214,000 in EV Advanced Material on August 29, 2024 and sell it today you would earn a total of 5,500 from holding EV Advanced Material or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. EV Advanced Material
Performance |
| Timeline |
| Sangsin Energy Display |
| EV Advanced Material |
Sangsin Energy and EV Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and EV Advanced
The main advantage of trading using opposite Sangsin Energy and EV Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, EV Advanced 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 EV Advanced will offset losses from the drop in EV Advanced's long position.| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor |
| EV Advanced vs. Korea Real Estate | EV Advanced vs. Korea Ratings Co | EV Advanced vs. IQuest Co | EV Advanced vs. Wonbang Tech 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |