Correlation Between Daewoo SBI and SS TECH
Can any of the company-specific risk be diversified away by investing in both Daewoo SBI 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 Daewoo SBI and SS TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo SBI SPAC and SS TECH, you can compare the effects of market volatilities on Daewoo SBI 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 Daewoo SBI with a short position of SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo SBI and SS TECH.
Diversification Opportunities for Daewoo SBI and SS TECH
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daewoo and 101490 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo SBI SPAC and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH and Daewoo SBI 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 Daewoo SBI SPAC 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 Daewoo SBI i.e., Daewoo SBI and SS TECH go up and down completely randomly.
Pair Corralation between Daewoo SBI and SS TECH
Assuming the 90 days trading horizon Daewoo SBI SPAC is expected to under-perform the SS TECH. But the stock apears to be less risky and, when comparing its historical volatility, Daewoo SBI SPAC is 1.64 times less risky than SS TECH. The stock trades about -0.04 of its potential returns per unit of risk. The SS TECH is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,021,379 in SS TECH on November 7, 2024 and sell it today you would lose (246,379) from holding SS TECH or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewoo SBI SPAC vs. SS TECH
Performance |
| Timeline |
| Daewoo SBI SPAC |
| SS TECH |
Daewoo SBI and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo SBI and SS TECH
The main advantage of trading using opposite Daewoo SBI and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo SBI 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.| Daewoo SBI vs. Dongwoo Farm To | Daewoo SBI vs. Nam Hwa Construction | Daewoo SBI vs. UJU Electronics Co | Daewoo SBI vs. Kyeryong Construction 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |