Correlation Between Sangshin Electronics and Hansol Chemica
Can any of the company-specific risk be diversified away by investing in both Sangshin Electronics and Hansol Chemica 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 Sangshin Electronics and Hansol Chemica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangshin Electronics Co and Hansol Chemica, you can compare the effects of market volatilities on Sangshin Electronics and Hansol Chemica 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 Sangshin Electronics with a short position of Hansol Chemica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangshin Electronics and Hansol Chemica.
Diversification Opportunities for Sangshin Electronics and Hansol Chemica
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sangshin and Hansol is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sangshin Electronics Co and Hansol Chemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemica and Sangshin Electronics 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 Sangshin Electronics Co are associated (or correlated) with Hansol Chemica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemica has no effect on the direction of Sangshin Electronics i.e., Sangshin Electronics and Hansol Chemica go up and down completely randomly.
Pair Corralation between Sangshin Electronics and Hansol Chemica
Assuming the 90 days trading horizon Sangshin Electronics Co is expected to generate 1.5 times more return on investment than Hansol Chemica. However, Sangshin Electronics is 1.5 times more volatile than Hansol Chemica. It trades about 0.01 of its potential returns per unit of risk. Hansol Chemica is currently generating about -0.05 per unit of risk. If you would invest 340,000 in Sangshin Electronics Co on September 1, 2024 and sell it today you would lose (47,000) from holding Sangshin Electronics Co or give up 13.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.77% |
| Values | Daily Returns |
Sangshin Electronics Co vs. Hansol Chemica
Performance |
| Timeline |
| Sangshin Electronics |
| Hansol Chemica |
Sangshin Electronics and Hansol Chemica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangshin Electronics and Hansol Chemica
The main advantage of trading using opposite Sangshin Electronics and Hansol Chemica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangshin Electronics position performs unexpectedly, Hansol Chemica 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 Hansol Chemica will offset losses from the drop in Hansol Chemica's long position.| Sangshin Electronics vs. Daejoo Electronic Materials | Sangshin Electronics vs. Parksystems Corp | Sangshin Electronics vs. BH Co | Sangshin Electronics vs. Partron Co |
| Hansol Chemica vs. Display Tech Co | Hansol Chemica vs. LG Display Co | Hansol Chemica vs. Inzi Display CoLtd | Hansol Chemica vs. Eagle Veterinary Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |