Correlation Between Alton Sports and Sungdo Engineering
Can any of the company-specific risk be diversified away by investing in both Alton Sports and Sungdo Engineering 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 Alton Sports and Sungdo Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Sungdo Engineering Construction, you can compare the effects of market volatilities on Alton Sports and Sungdo Engineering 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 Alton Sports with a short position of Sungdo Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Sungdo Engineering.
Diversification Opportunities for Alton Sports and Sungdo Engineering
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alton and Sungdo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Sungdo Engineering Constructio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungdo Engineering and Alton Sports 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 Alton Sports CoLtd are associated (or correlated) with Sungdo Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungdo Engineering has no effect on the direction of Alton Sports i.e., Alton Sports and Sungdo Engineering go up and down completely randomly.
Pair Corralation between Alton Sports and Sungdo Engineering
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to generate 0.65 times more return on investment than Sungdo Engineering. However, Alton Sports CoLtd is 1.55 times less risky than Sungdo Engineering. It trades about 0.33 of its potential returns per unit of risk. Sungdo Engineering Construction is currently generating about -0.74 per unit of risk. If you would invest 145,300 in Alton Sports CoLtd on November 7, 2024 and sell it today you would earn a total of 8,700 from holding Alton Sports CoLtd or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Sungdo Engineering Constructio
Performance |
| Timeline |
| Alton Sports CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sungdo Engineering |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alton Sports and Sungdo Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Sungdo Engineering
The main advantage of trading using opposite Alton Sports and Sungdo Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports position performs unexpectedly, Sungdo Engineering 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 Sungdo Engineering will offset losses from the drop in Sungdo Engineering's long position.| Alton Sports vs. Korea Plasma Technology | Alton Sports vs. Daou Technology | Alton Sports vs. Vina Technology Co | Alton Sports vs. Woori Technology |
| Sungdo Engineering vs. Koh Young Technology | Sungdo Engineering vs. Hana Financial | Sungdo Engineering vs. Samsung 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |