Correlation Between SS TECH and Orbitech
Can any of the company-specific risk be diversified away by investing in both SS TECH and Orbitech 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 SS TECH and Orbitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and Orbitech Co, you can compare the effects of market volatilities on SS TECH and Orbitech 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 SS TECH with a short position of Orbitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and Orbitech.
Diversification Opportunities for SS TECH and Orbitech
Good diversification
The 3 months correlation between 101490 and Orbitech is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and Orbitech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbitech and SS TECH 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 SS TECH are associated (or correlated) with Orbitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbitech has no effect on the direction of SS TECH i.e., SS TECH and Orbitech go up and down completely randomly.
Pair Corralation between SS TECH and Orbitech
Assuming the 90 days trading horizon SS TECH is expected to generate 0.98 times more return on investment than Orbitech. However, SS TECH is 1.02 times less risky than Orbitech. It trades about 0.07 of its potential returns per unit of risk. Orbitech Co is currently generating about 0.02 per unit of risk. If you would invest 2,639,196 in SS TECH on November 2, 2024 and sell it today you would earn a total of 450,804 from holding SS TECH or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. Orbitech Co
Performance |
| Timeline |
| SS TECH |
| Orbitech |
SS TECH and Orbitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and Orbitech
The main advantage of trading using opposite SS TECH and Orbitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, Orbitech 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 Orbitech will offset losses from the drop in Orbitech's long position.| SS TECH vs. Samsung Electronics Co | SS TECH vs. Samsung Electronics Co | SS TECH vs. SK Hynix | SS TECH vs. HMM Co |
| Orbitech vs. Inzi Display CoLtd | Orbitech vs. Ssangyong Information Communication | Orbitech vs. RFTech Co | Orbitech vs. Nable Communications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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