Correlation Between Seojin System and Ace Technologies
Can any of the company-specific risk be diversified away by investing in both Seojin System and Ace Technologies 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 Ace Technologies 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 Ace Technologies Corp, you can compare the effects of market volatilities on Seojin System and Ace Technologies 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 Ace Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seojin System and Ace Technologies.
Diversification Opportunities for Seojin System and Ace Technologies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seojin and Ace is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Seojin System CoLtd and Ace Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Technologies Corp 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 Ace Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Technologies Corp has no effect on the direction of Seojin System i.e., Seojin System and Ace Technologies go up and down completely randomly.
Pair Corralation between Seojin System and Ace Technologies
Assuming the 90 days trading horizon Seojin System CoLtd is expected to generate 1.28 times more return on investment than Ace Technologies. However, Seojin System is 1.28 times more volatile than Ace Technologies Corp. It trades about -0.13 of its potential returns per unit of risk. Ace Technologies Corp is currently generating about -0.26 per unit of risk. If you would invest 2,865,000 in Seojin System CoLtd on September 1, 2024 and sell it today you would lose (320,000) from holding Seojin System CoLtd or give up 11.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Seojin System CoLtd vs. Ace Technologies Corp
Performance |
| Timeline |
| Seojin System CoLtd |
| Ace Technologies Corp |
Seojin System and Ace Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seojin System and Ace Technologies
The main advantage of trading using opposite Seojin System and Ace Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seojin System position performs unexpectedly, Ace Technologies 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 Ace Technologies will offset losses from the drop in Ace Technologies' long position.| Seojin System vs. Ubiquoss Holdings | Seojin System vs. Asia Pacific Satellite | Seojin System vs. Mercury |
| Ace Technologies vs. Kmw Inc | Ace Technologies vs. NH SPAC 8 | Ace Technologies vs. Daejoo Electronic Materials | Ace Technologies vs. Seojin System CoLtd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |