Correlation Between SS TECH and GeneBioTech
Can any of the company-specific risk be diversified away by investing in both SS TECH and GeneBioTech 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 GeneBioTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and GeneBioTech Co, you can compare the effects of market volatilities on SS TECH and GeneBioTech 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 GeneBioTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and GeneBioTech.
Diversification Opportunities for SS TECH and GeneBioTech
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 101490 and GeneBioTech is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and GeneBioTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneBioTech 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 GeneBioTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneBioTech has no effect on the direction of SS TECH i.e., SS TECH and GeneBioTech go up and down completely randomly.
Pair Corralation between SS TECH and GeneBioTech
Assuming the 90 days trading horizon SS TECH is expected to generate 1.76 times more return on investment than GeneBioTech. However, SS TECH is 1.76 times more volatile than GeneBioTech Co. It trades about 0.01 of its potential returns per unit of risk. GeneBioTech Co is currently generating about -0.01 per unit of risk. If you would invest 2,690,679 in SS TECH on September 26, 2024 and sell it today you would lose (130,679) from holding SS TECH or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. GeneBioTech Co
Performance |
| Timeline |
| SS TECH |
| GeneBioTech |
SS TECH and GeneBioTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and GeneBioTech
The main advantage of trading using opposite SS TECH and GeneBioTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, GeneBioTech 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 GeneBioTech will offset losses from the drop in GeneBioTech's long position.| SS TECH vs. Dongsin Engineering Construction | SS TECH vs. Doosan Fuel Cell | SS TECH vs. Daishin Balance 1 | SS TECH vs. Total Soft Bank |
| GeneBioTech vs. A Tech Solution Co | GeneBioTech vs. SS TECH | GeneBioTech vs. PJ Metal Co | GeneBioTech vs. Duksan Hi Metal |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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