Correlation Between InnoTherapy and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both InnoTherapy 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 InnoTherapy and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnoTherapy and Sangsin Energy Display, you can compare the effects of market volatilities on InnoTherapy 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 InnoTherapy with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnoTherapy and Sangsin Energy.
Diversification Opportunities for InnoTherapy and Sangsin Energy
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InnoTherapy and Sangsin is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding InnoTherapy 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 InnoTherapy 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 InnoTherapy 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 InnoTherapy i.e., InnoTherapy and Sangsin Energy go up and down completely randomly.
Pair Corralation between InnoTherapy and Sangsin Energy
Assuming the 90 days trading horizon InnoTherapy is expected to generate 0.62 times more return on investment than Sangsin Energy. However, InnoTherapy is 1.62 times less risky than Sangsin Energy. It trades about 0.18 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.12 per unit of risk. If you would invest 826,000 in InnoTherapy on November 8, 2024 and sell it today you would earn a total of 186,000 from holding InnoTherapy or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InnoTherapy vs. Sangsin Energy Display
Performance |
| Timeline |
| InnoTherapy |
| Sangsin Energy Display |
InnoTherapy and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnoTherapy and Sangsin Energy
The main advantage of trading using opposite InnoTherapy and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnoTherapy 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.| InnoTherapy vs. Kolon Life Science | InnoTherapy vs. JETEMA Co | InnoTherapy vs. Aminologics CoLtd | InnoTherapy vs. Daihan Pharmaceutical CoLtd |
| Sangsin Energy vs. DAEDUCK ELECTRONICS CoLtd | Sangsin Energy vs. Ssangyong Information Communication | Sangsin Energy vs. Daeduck Electronics Co | Sangsin Energy vs. Vissem Electronics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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