Correlation Between Seojin System and Ubiquoss Holdings
Can any of the company-specific risk be diversified away by investing in both Seojin System and Ubiquoss Holdings 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 Seojin System and Ubiquoss Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seojin System CoLtd and Ubiquoss Holdings, you can compare the effects of market volatilities on Seojin System and Ubiquoss Holdings 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 Seojin System with a short position of Ubiquoss Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seojin System and Ubiquoss Holdings.
Diversification Opportunities for Seojin System and Ubiquoss Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seojin and Ubiquoss is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Seojin System CoLtd and Ubiquoss Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubiquoss Holdings and Seojin System 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 Seojin System CoLtd are associated (or correlated) with Ubiquoss Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubiquoss Holdings has no effect on the direction of Seojin System i.e., Seojin System and Ubiquoss Holdings go up and down completely randomly.
Pair Corralation between Seojin System and Ubiquoss Holdings
Assuming the 90 days trading horizon Seojin System CoLtd is expected to generate 2.62 times more return on investment than Ubiquoss Holdings. However, Seojin System is 2.62 times more volatile than Ubiquoss Holdings. It trades about 0.04 of its potential returns per unit of risk. Ubiquoss Holdings is currently generating about -0.08 per unit of risk. If you would invest 1,720,932 in Seojin System CoLtd on September 1, 2024 and sell it today you would earn a total of 824,068 from holding Seojin System CoLtd or generate 47.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.17% |
| Values | Daily Returns |
Seojin System CoLtd vs. Ubiquoss Holdings
Performance |
| Timeline |
| Seojin System CoLtd |
| Ubiquoss Holdings |
Seojin System and Ubiquoss Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seojin System and Ubiquoss Holdings
The main advantage of trading using opposite Seojin System and Ubiquoss Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seojin System position performs unexpectedly, Ubiquoss Holdings 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 Ubiquoss Holdings will offset losses from the drop in Ubiquoss Holdings' long position.| Seojin System vs. Ubiquoss Holdings | Seojin System vs. Asia Pacific Satellite | Seojin System vs. Mercury |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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