Correlation Between Digital Imaging and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Digital Imaging and Sangsin Energy 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 Digital Imaging and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Imaging Technology and Sangsin Energy Display, you can compare the effects of market volatilities on Digital Imaging and Sangsin Energy 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 Digital Imaging with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Imaging and Sangsin Energy.
Diversification Opportunities for Digital Imaging and Sangsin Energy
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Digital and Sangsin is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Digital Imaging Technology and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and Digital Imaging 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 Digital Imaging Technology are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Digital Imaging i.e., Digital Imaging and Sangsin Energy go up and down completely randomly.
Pair Corralation between Digital Imaging and Sangsin Energy
Assuming the 90 days trading horizon Digital Imaging Technology is expected to generate 1.82 times more return on investment than Sangsin Energy. However, Digital Imaging is 1.82 times more volatile than Sangsin Energy Display. It trades about 0.28 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.19 per unit of risk. If you would invest 1,305,000 in Digital Imaging Technology on November 8, 2024 and sell it today you would earn a total of 400,000 from holding Digital Imaging Technology or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Imaging Technology vs. Sangsin Energy Display
Performance |
| Timeline |
| Digital Imaging Tech |
| Sangsin Energy Display |
Digital Imaging and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Imaging and Sangsin Energy
The main advantage of trading using opposite Digital Imaging and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Imaging position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Digital Imaging vs. LG Household Healthcare | Digital Imaging vs. Coloray International Investment | Digital Imaging vs. Kg Chemical | Digital Imaging vs. Kukdong Oil Chemicals |
| Sangsin Energy vs. DAEDUCK ELECTRONICS CoLtd | Sangsin Energy vs. Ssangyong Information Communication | Sangsin Energy vs. Daeduck Electronics Co | Sangsin Energy vs. Vissem Electronics 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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