Correlation Between Sangsin Energy and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on Sangsin Energy and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Cuckoo Homesys.
Diversification Opportunities for Sangsin Energy and Cuckoo Homesys
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and Cuckoo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Sangsin Energy and Cuckoo Homesys
Assuming the 90 days trading horizon Sangsin Energy Display is expected to generate 2.96 times more return on investment than Cuckoo Homesys. However, Sangsin Energy is 2.96 times more volatile than Cuckoo Homesys Co. It trades about 0.04 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.46 per unit of risk. If you would invest 765,552 in Sangsin Energy Display on October 25, 2024 and sell it today you would earn a total of 10,448 from holding Sangsin Energy Display or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Cuckoo Homesys Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Cuckoo Homesys |
Sangsin Energy and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Cuckoo Homesys
The main advantage of trading using opposite Sangsin Energy and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| Sangsin Energy vs. SeAH Besteel Corp | Sangsin Energy vs. Insun Environment New | Sangsin Energy vs. PlayD Co | Sangsin Energy vs. Aprogen Healthcare Games |
| Cuckoo Homesys vs. PLAYWITH | Cuckoo Homesys vs. Dongnam Chemical Co | Cuckoo Homesys vs. Sangsin Energy Display | Cuckoo Homesys vs. Namhae Chemical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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