Correlation Between CU Medical and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both CU Medical and Ssangyong Information 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 CU Medical and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Medical Systems and Ssangyong Information Communication, you can compare the effects of market volatilities on CU Medical and Ssangyong Information 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 CU Medical with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Medical and Ssangyong Information.
Diversification Opportunities for CU Medical and Ssangyong Information
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 115480 and Ssangyong is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CU Medical Systems and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and CU Medical 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 CU Medical Systems are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of CU Medical i.e., CU Medical and Ssangyong Information go up and down completely randomly.
Pair Corralation between CU Medical and Ssangyong Information
Assuming the 90 days trading horizon CU Medical Systems is expected to under-perform the Ssangyong Information. In addition to that, CU Medical is 1.38 times more volatile than Ssangyong Information Communication. It trades about -0.34 of its total potential returns per unit of risk. Ssangyong Information Communication is currently generating about 0.22 per unit of volatility. If you would invest 60,300 in Ssangyong Information Communication on September 3, 2024 and sell it today you would earn a total of 3,800 from holding Ssangyong Information Communication or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Medical Systems vs. Ssangyong Information Communic
Performance |
| Timeline |
| CU Medical Systems |
| Ssangyong Information |
CU Medical and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Medical and Ssangyong Information
The main advantage of trading using opposite CU Medical and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Medical position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| CU Medical vs. AptaBio Therapeutics | CU Medical vs. KT Hitel | CU Medical vs. SillaJen | CU Medical vs. Cytogen |
| Ssangyong Information vs. SBI Investment KOREA | Ssangyong Information vs. Jeju Beer Co | Ssangyong Information vs. Coloray International Investment | Ssangyong Information vs. NH Investment Securities |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |