Correlation Between SSR and Sung Bo
Can any of the company-specific risk be diversified away by investing in both SSR and Sung Bo 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 SSR and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Inc and Sung Bo Chemicals, you can compare the effects of market volatilities on SSR and Sung Bo 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 SSR with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR and Sung Bo.
Diversification Opportunities for SSR and Sung Bo
Modest diversification
The 3 months correlation between SSR and Sung is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SSR Inc and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals and SSR 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 SSR Inc are associated (or correlated) with Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of SSR i.e., SSR and Sung Bo go up and down completely randomly.
Pair Corralation between SSR and Sung Bo
Assuming the 90 days trading horizon SSR Inc is expected to generate 1.47 times more return on investment than Sung Bo. However, SSR is 1.47 times more volatile than Sung Bo Chemicals. It trades about 0.31 of its potential returns per unit of risk. Sung Bo Chemicals is currently generating about -0.19 per unit of risk. If you would invest 326,500 in SSR Inc on August 30, 2024 and sell it today you would earn a total of 20,500 from holding SSR Inc or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSR Inc vs. Sung Bo Chemicals
Performance |
| Timeline |
| SSR Inc |
| Sung Bo Chemicals |
SSR and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR and Sung Bo
The main advantage of trading using opposite SSR and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.| SSR vs. Hannong Chemicals | SSR vs. Tae Kyung Chemical | SSR vs. Iljin Materials Co | SSR vs. Hyundai Engineering Plastics |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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