Correlation Between MS Autotech and Silla Sg
Can any of the company-specific risk be diversified away by investing in both MS Autotech 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 MS Autotech and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Silla Sg Co, you can compare the effects of market volatilities on MS Autotech 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 MS Autotech with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Silla Sg.
Diversification Opportunities for MS Autotech and Silla Sg
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 123040 and Silla is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and MS Autotech 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 MS Autotech CoLtd 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 MS Autotech i.e., MS Autotech and Silla Sg go up and down completely randomly.
Pair Corralation between MS Autotech and Silla Sg
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to under-perform the Silla Sg. But the stock apears to be less risky and, when comparing its historical volatility, MS Autotech CoLtd is 1.19 times less risky than Silla Sg. The stock trades about -0.12 of its potential returns per unit of risk. The Silla Sg Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 783,000 in Silla Sg Co on September 1, 2024 and sell it today you would lose (174,000) from holding Silla Sg Co or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Silla Sg Co
Performance |
| Timeline |
| MS Autotech CoLtd |
| Silla Sg |
MS Autotech and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Silla Sg
The main advantage of trading using opposite MS Autotech and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech 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.| MS Autotech vs. LG Display | MS Autotech vs. Hyundai Motor | MS Autotech vs. Hyundai Motor Co | MS Autotech vs. Hyundai Motor Co |
| Silla Sg vs. Korea Real Estate | Silla Sg vs. Korea Ratings Co | Silla Sg vs. IQuest Co | Silla Sg vs. Wonbang Tech 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |