Correlation Between SNTEnergy and Daejoo Electronic
Can any of the company-specific risk be diversified away by investing in both SNTEnergy and Daejoo Electronic 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 SNTEnergy and Daejoo Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNTEnergy Co and Daejoo Electronic Materials, you can compare the effects of market volatilities on SNTEnergy and Daejoo Electronic 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 SNTEnergy with a short position of Daejoo Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNTEnergy and Daejoo Electronic.
Diversification Opportunities for SNTEnergy and Daejoo Electronic
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SNTEnergy and Daejoo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SNTEnergy Co and Daejoo Electronic Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejoo Electronic and SNTEnergy 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 SNTEnergy Co are associated (or correlated) with Daejoo Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejoo Electronic has no effect on the direction of SNTEnergy i.e., SNTEnergy and Daejoo Electronic go up and down completely randomly.
Pair Corralation between SNTEnergy and Daejoo Electronic
Assuming the 90 days trading horizon SNTEnergy Co is expected to generate 1.02 times more return on investment than Daejoo Electronic. However, SNTEnergy is 1.02 times more volatile than Daejoo Electronic Materials. It trades about 0.07 of its potential returns per unit of risk. Daejoo Electronic Materials is currently generating about 0.02 per unit of risk. If you would invest 640,515 in SNTEnergy Co on September 4, 2024 and sell it today you would earn a total of 1,166,485 from holding SNTEnergy Co or generate 182.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNTEnergy Co vs. Daejoo Electronic Materials
Performance |
| Timeline |
| SNTEnergy |
| Daejoo Electronic |
SNTEnergy and Daejoo Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNTEnergy and Daejoo Electronic
The main advantage of trading using opposite SNTEnergy and Daejoo Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNTEnergy position performs unexpectedly, Daejoo Electronic 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 Daejoo Electronic will offset losses from the drop in Daejoo Electronic's long position.| SNTEnergy vs. Doosan Heavy Ind | SNTEnergy vs. Korea Refract | SNTEnergy vs. Busan Industrial Co | SNTEnergy vs. Busan Ind |
| Daejoo Electronic vs. Dongsin Engineering Construction | Daejoo Electronic vs. Doosan Fuel Cell | Daejoo Electronic vs. Daishin Balance 1 | Daejoo Electronic vs. Total Soft Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |