Correlation Between Sangsin Energy and SKONEC Entertainment
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and SKONEC Entertainment 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 SKONEC Entertainment 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 SKONEC Entertainment Co, you can compare the effects of market volatilities on Sangsin Energy and SKONEC Entertainment 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 SKONEC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and SKONEC Entertainment.
Diversification Opportunities for Sangsin Energy and SKONEC Entertainment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and SKONEC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and SKONEC Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKONEC Entertainment 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 SKONEC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKONEC Entertainment has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and SKONEC Entertainment go up and down completely randomly.
Pair Corralation between Sangsin Energy and SKONEC Entertainment
Assuming the 90 days trading horizon Sangsin Energy Display is expected to generate 0.87 times more return on investment than SKONEC Entertainment. However, Sangsin Energy Display is 1.15 times less risky than SKONEC Entertainment. It trades about -0.04 of its potential returns per unit of risk. SKONEC Entertainment Co is currently generating about -0.07 per unit of risk. If you would invest 1,727,115 in Sangsin Energy Display on October 16, 2024 and sell it today you would lose (965,115) from holding Sangsin Energy Display or give up 55.88% 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. SKONEC Entertainment Co
Performance |
| Timeline |
| Sangsin Energy Display |
| SKONEC Entertainment |
Sangsin Energy and SKONEC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and SKONEC Entertainment
The main advantage of trading using opposite Sangsin Energy and SKONEC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, SKONEC Entertainment 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 SKONEC Entertainment will offset losses from the drop in SKONEC Entertainment's long position.| Sangsin Energy vs. Lotte Non Life Insurance | Sangsin Energy vs. TK Chemical | Sangsin Energy vs. JC Chemical Co | Sangsin Energy vs. Korea Petro Chemical |
| SKONEC Entertainment vs. Sungchang Autotech Co | SKONEC Entertainment vs. Sangsin Energy Display | SKONEC Entertainment vs. Ssangyong Information Communication | SKONEC Entertainment vs. Nable Communications |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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