Correlation Between Sangsin Energy and Samhyun
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Samhyun 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 Samhyun 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 Samhyun, you can compare the effects of market volatilities on Sangsin Energy and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Samhyun.
Diversification Opportunities for Sangsin Energy and Samhyun
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sangsin and Samhyun is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Samhyun go up and down completely randomly.
Pair Corralation between Sangsin Energy and Samhyun
Assuming the 90 days trading horizon Sangsin Energy is expected to generate 18.55 times less return on investment than Samhyun. But when comparing it to its historical volatility, Sangsin Energy Display is 2.98 times less risky than Samhyun. It trades about 0.05 of its potential returns per unit of risk. Samhyun is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 666,000 in Samhyun on October 17, 2024 and sell it today you would earn a total of 336,000 from holding Samhyun or generate 50.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Samhyun
Performance |
| Timeline |
| Sangsin Energy Display |
| Samhyun |
Sangsin Energy and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Samhyun
The main advantage of trading using opposite Sangsin Energy and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.| Sangsin Energy vs. SCI Information Service | Sangsin Energy vs. Alton Sports CoLtd | Sangsin Energy vs. Inzi Display CoLtd | Sangsin Energy vs. Grand Korea Leisure |
| Samhyun vs. Daishin Information Communications | Samhyun vs. Taegu Broadcasting | Samhyun vs. TS Investment Corp | Samhyun vs. Sangsangin Investment Securities |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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