Correlation Between Sangsin Energy and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and BGF Retail 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 BGF Retail 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 BGF Retail Co, you can compare the effects of market volatilities on Sangsin Energy and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and BGF Retail.
Diversification Opportunities for Sangsin Energy and BGF Retail
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and BGF is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and BGF Retail go up and down completely randomly.
Pair Corralation between Sangsin Energy and BGF Retail
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the BGF Retail. In addition to that, Sangsin Energy is 1.1 times more volatile than BGF Retail Co. It trades about -0.41 of its total potential returns per unit of risk. BGF Retail Co is currently generating about -0.08 per unit of volatility. If you would invest 11,200,000 in BGF Retail Co on August 29, 2024 and sell it today you would lose (500,000) from holding BGF Retail Co or give up 4.46% 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. BGF Retail Co
Performance |
| Timeline |
| Sangsin Energy Display |
| BGF Retail |
Sangsin Energy and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and BGF Retail
The main advantage of trading using opposite Sangsin Energy and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail'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 |
| BGF Retail vs. AptaBio Therapeutics | BGF Retail vs. Daewoo SBI SPAC | BGF Retail vs. Dream Security co | BGF Retail vs. Microfriend |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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