Correlation Between V One and Sungdo Engineering
Can any of the company-specific risk be diversified away by investing in both V One and Sungdo Engineering 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 V One and Sungdo Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between V One Tech Co and Sungdo Engineering Construction, you can compare the effects of market volatilities on V One and Sungdo Engineering 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 V One with a short position of Sungdo Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of V One and Sungdo Engineering.
Diversification Opportunities for V One and Sungdo Engineering
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 251630 and Sungdo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding V One Tech Co and Sungdo Engineering Constructio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungdo Engineering and V One 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 V One Tech Co are associated (or correlated) with Sungdo Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungdo Engineering has no effect on the direction of V One i.e., V One and Sungdo Engineering go up and down completely randomly.
Pair Corralation between V One and Sungdo Engineering
Assuming the 90 days trading horizon V One Tech Co is expected to generate 1.47 times more return on investment than Sungdo Engineering. However, V One is 1.47 times more volatile than Sungdo Engineering Construction. It trades about 0.18 of its potential returns per unit of risk. Sungdo Engineering Construction is currently generating about -0.49 per unit of risk. If you would invest 435,000 in V One Tech Co on November 2, 2024 and sell it today you would earn a total of 38,000 from holding V One Tech Co or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V One Tech Co vs. Sungdo Engineering Constructio
Performance |
| Timeline |
| V One Tech |
| Sungdo Engineering |
V One and Sungdo Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V One and Sungdo Engineering
The main advantage of trading using opposite V One and Sungdo Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V One position performs unexpectedly, Sungdo Engineering 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 Sungdo Engineering will offset losses from the drop in Sungdo Engineering's long position.| V One vs. Hana Materials | V One vs. Echomarketing CoLtd | V One vs. Ssangyong Materials Corp | V One vs. Homecast CoLtd |
| Sungdo Engineering vs. Camus Engineering Construction | Sungdo Engineering vs. Dongwoo Farm To | Sungdo Engineering vs. Cuckoo Homesys Co | Sungdo Engineering vs. Woorim Machinery 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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