Correlation Between Sangsin Energy and PlayD
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and PlayD 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 PlayD 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 PlayD Co, you can compare the effects of market volatilities on Sangsin Energy and PlayD 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 PlayD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and PlayD.
Diversification Opportunities for Sangsin Energy and PlayD
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sangsin and PlayD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and PlayD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayD 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 PlayD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PlayD has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and PlayD go up and down completely randomly.
Pair Corralation between Sangsin Energy and PlayD
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the PlayD. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.45 times less risky than PlayD. The stock trades about -0.48 of its potential returns per unit of risk. The PlayD Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 632,000 in PlayD Co on September 1, 2024 and sell it today you would lose (28,000) from holding PlayD Co or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. PlayD Co
Performance |
| Timeline |
| Sangsin Energy Display |
| PlayD |
Sangsin Energy and PlayD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and PlayD
The main advantage of trading using opposite Sangsin Energy and PlayD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, PlayD 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 PlayD will offset losses from the drop in PlayD'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 |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |