Correlation Between Sangsin Energy and CG Hi
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and CG Hi 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 CG Hi 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 CG Hi Tech, you can compare the effects of market volatilities on Sangsin Energy and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and CG Hi.
Diversification Opportunities for Sangsin Energy and CG Hi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and 264660 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and CG Hi go up and down completely randomly.
Pair Corralation between Sangsin Energy and CG Hi
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the CG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 1.03 times less risky than CG Hi. The stock trades about -0.41 of its potential returns per unit of risk. The CG Hi Tech is currently generating about -0.36 of returns per unit of risk over similar time horizon. If you would invest 1,269,000 in CG Hi Tech on August 29, 2024 and sell it today you would lose (241,000) from holding CG Hi Tech or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. CG Hi Tech
Performance |
| Timeline |
| Sangsin Energy Display |
| CG Hi Tech |
Sangsin Energy and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and CG Hi
The main advantage of trading using opposite Sangsin Energy and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi'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 |
| CG Hi vs. Ecoplastic | CG Hi vs. EV Advanced Material | CG Hi vs. Sangsin Energy Display | CG Hi vs. National Plastic 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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