Correlation Between Amogreentech and SS TECH
Can any of the company-specific risk be diversified away by investing in both Amogreentech and SS TECH 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 Amogreentech and SS TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and SS TECH, you can compare the effects of market volatilities on Amogreentech and SS TECH 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 Amogreentech with a short position of SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and SS TECH.
Diversification Opportunities for Amogreentech and SS TECH
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amogreentech and 101490 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH and Amogreentech 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 Amogreentech Co are associated (or correlated) with SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Amogreentech i.e., Amogreentech and SS TECH go up and down completely randomly.
Pair Corralation between Amogreentech and SS TECH
Assuming the 90 days trading horizon Amogreentech Co is expected to under-perform the SS TECH. In addition to that, Amogreentech is 1.05 times more volatile than SS TECH. It trades about -0.06 of its total potential returns per unit of risk. SS TECH is currently generating about 0.04 per unit of volatility. If you would invest 2,315,000 in SS TECH on August 28, 2024 and sell it today you would earn a total of 50,000 from holding SS TECH or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. SS TECH
Performance |
| Timeline |
| Amogreentech |
| SS TECH |
Amogreentech and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and SS TECH
The main advantage of trading using opposite Amogreentech and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH's long position.The idea behind Amogreentech Co and SS TECH pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SS TECH vs. Korea Real Estate | SS TECH vs. Korea Ratings Co | SS TECH vs. IQuest Co | SS TECH 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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