Correlation Between N Citron and Sejong Telecom
Can any of the company-specific risk be diversified away by investing in both N Citron and Sejong Telecom 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 N Citron and Sejong Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Citron and Sejong Telecom, you can compare the effects of market volatilities on N Citron and Sejong Telecom 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 N Citron with a short position of Sejong Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Citron and Sejong Telecom.
Diversification Opportunities for N Citron and Sejong Telecom
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 101400 and Sejong is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding N Citron and Sejong Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejong Telecom and N Citron 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 N Citron are associated (or correlated) with Sejong Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejong Telecom has no effect on the direction of N Citron i.e., N Citron and Sejong Telecom go up and down completely randomly.
Pair Corralation between N Citron and Sejong Telecom
Assuming the 90 days trading horizon N Citron is expected to generate 3.61 times less return on investment than Sejong Telecom. But when comparing it to its historical volatility, N Citron is 1.45 times less risky than Sejong Telecom. It trades about 0.07 of its potential returns per unit of risk. Sejong Telecom is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 39,400 in Sejong Telecom on October 23, 2024 and sell it today you would earn a total of 2,300 from holding Sejong Telecom or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Citron vs. Sejong Telecom
Performance |
| Timeline |
| N Citron |
| Sejong Telecom |
N Citron and Sejong Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Citron and Sejong Telecom
The main advantage of trading using opposite N Citron and Sejong Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Citron position performs unexpectedly, Sejong Telecom 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 Sejong Telecom will offset losses from the drop in Sejong Telecom's long position.| N Citron vs. Lotte Rental Co | N Citron vs. Kbi Metal Co | N Citron vs. INFINITT Healthcare Co | N Citron vs. Aprogen Healthcare Games |
| Sejong Telecom vs. Sam Chun Dang | Sejong Telecom vs. SAMRYOONG CoLtd | Sejong Telecom vs. BYON Co | Sejong Telecom vs. Sangsangin Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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