Correlation Between ABOV Semiconductor and Silla Sg
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and Silla Sg 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 ABOV Semiconductor and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Silla Sg Co, you can compare the effects of market volatilities on ABOV Semiconductor and Silla Sg 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 ABOV Semiconductor with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Silla Sg.
Diversification Opportunities for ABOV Semiconductor and Silla Sg
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABOV and Silla is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and Silla Sg go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Silla Sg
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to under-perform the Silla Sg. But the stock apears to be less risky and, when comparing its historical volatility, ABOV Semiconductor Co is 1.83 times less risky than Silla Sg. The stock trades about -0.05 of its potential returns per unit of risk. The Silla Sg Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 580,000 in Silla Sg Co on September 22, 2024 and sell it today you would earn a total of 66,000 from holding Silla Sg Co or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Silla Sg Co
Performance |
| Timeline |
| ABOV Semiconductor |
| Silla Sg |
ABOV Semiconductor and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Silla Sg
The main advantage of trading using opposite ABOV Semiconductor and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| ABOV Semiconductor vs. ChipsMedia | ABOV Semiconductor vs. Jeju Bank | ABOV Semiconductor vs. Tamul Multimedia Co | ABOV Semiconductor vs. SKONEC Entertainment Co |
| Silla Sg vs. ABOV Semiconductor Co | Silla Sg vs. Nice Information Telecommunication | Silla Sg vs. NICE Information Service | Silla Sg vs. Jeju Semiconductor Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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