Correlation Between Hanjoo Light and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Hanjoo Light and Sangsin Energy 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 Hanjoo Light and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjoo Light Metal and Sangsin Energy Display, you can compare the effects of market volatilities on Hanjoo Light and Sangsin Energy 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 Hanjoo Light with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjoo Light and Sangsin Energy.
Diversification Opportunities for Hanjoo Light and Sangsin Energy
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hanjoo and Sangsin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hanjoo Light Metal and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and Hanjoo Light 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 Hanjoo Light Metal are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Hanjoo Light i.e., Hanjoo Light and Sangsin Energy go up and down completely randomly.
Pair Corralation between Hanjoo Light and Sangsin Energy
Assuming the 90 days trading horizon Hanjoo Light Metal is expected to under-perform the Sangsin Energy. In addition to that, Hanjoo Light is 1.41 times more volatile than Sangsin Energy Display. It trades about -0.05 of its total potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.06 per unit of volatility. If you would invest 2,396,872 in Sangsin Energy Display on November 27, 2024 and sell it today you would lose (1,505,872) from holding Sangsin Energy Display or give up 62.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjoo Light Metal vs. Sangsin Energy Display
Performance |
| Timeline |
| Hanjoo Light Metal |
| Sangsin Energy Display |
Hanjoo Light and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjoo Light and Sangsin Energy
The main advantage of trading using opposite Hanjoo Light and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjoo Light position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Hanjoo Light vs. InnoTherapy | Hanjoo Light vs. Aprogen Healthcare Games | Hanjoo Light vs. Chorokbaem Healthcare Co | Hanjoo Light vs. INFINITT Healthcare Co |
| Sangsin Energy vs. Kyeryong Construction Industrial | Sangsin Energy vs. Formetal Co | Sangsin Energy vs. Choil Aluminum | Sangsin Energy vs. LEENO Industrial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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