Correlation Between CJ Cheiljedang and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both CJ Cheiljedang and Sangsin Energy 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 CJ Cheiljedang and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Cheiljedang and Sangsin Energy Display, you can compare the effects of market volatilities on CJ Cheiljedang and Sangsin Energy 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 CJ Cheiljedang with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Cheiljedang and Sangsin Energy.
Diversification Opportunities for CJ Cheiljedang and Sangsin Energy
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 097950 and Sangsin is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CJ Cheiljedang and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and CJ Cheiljedang 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 CJ Cheiljedang are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of CJ Cheiljedang i.e., CJ Cheiljedang and Sangsin Energy go up and down completely randomly.
Pair Corralation between CJ Cheiljedang and Sangsin Energy
Assuming the 90 days trading horizon CJ Cheiljedang is expected to generate 0.68 times more return on investment than Sangsin Energy. However, CJ Cheiljedang is 1.47 times less risky than Sangsin Energy. It trades about -0.01 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.06 per unit of risk. If you would invest 30,784,700 in CJ Cheiljedang on November 27, 2024 and sell it today you would lose (5,834,700) from holding CJ Cheiljedang or give up 18.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Cheiljedang vs. Sangsin Energy Display
Performance |
| Timeline |
| CJ Cheiljedang |
| Sangsin Energy Display |
CJ Cheiljedang and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Cheiljedang and Sangsin Energy
The main advantage of trading using opposite CJ Cheiljedang and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Cheiljedang position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| CJ Cheiljedang vs. Daejoo Electronic Materials | CJ Cheiljedang vs. Daishin Information Communications | CJ Cheiljedang vs. Nice Information Telecommunication | CJ Cheiljedang vs. Mobileleader CoLtd |
| Sangsin Energy vs. Kyeryong Construction Industrial | Sangsin Energy vs. Formetal Co | Sangsin Energy vs. Choil Aluminum | Sangsin Energy vs. LEENO Industrial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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