Correlation Between SSR and UNISEM
Can any of the company-specific risk be diversified away by investing in both SSR and UNISEM 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 UNISEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Inc and UNISEM Co, you can compare the effects of market volatilities on SSR and UNISEM 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 UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR and UNISEM.
Diversification Opportunities for SSR and UNISEM
Modest diversification
The 3 months correlation between SSR and UNISEM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SSR Inc and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM 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 UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of SSR i.e., SSR and UNISEM go up and down completely randomly.
Pair Corralation between SSR and UNISEM
Assuming the 90 days trading horizon SSR Inc is expected to generate 0.35 times more return on investment than UNISEM. However, SSR Inc is 2.84 times less risky than UNISEM. It trades about 0.24 of its potential returns per unit of risk. UNISEM Co is currently generating about -0.23 per unit of risk. If you would invest 327,000 in SSR Inc on August 28, 2024 and sell it today you would earn a total of 16,000 from holding SSR Inc or generate 4.89% 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. UNISEM Co
Performance |
| Timeline |
| SSR Inc |
| UNISEM |
SSR and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR and UNISEM
The main advantage of trading using opposite SSR and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.The idea behind SSR Inc and UNISEM Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| UNISEM vs. Samsung Publishing Co | UNISEM vs. Hankook Furniture Co | UNISEM vs. Nice Information Telecommunication | UNISEM vs. Cuckoo Homesys 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |