Correlation Between SSR and Settlebank
Can any of the company-specific risk be diversified away by investing in both SSR and Settlebank 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 Settlebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Inc and Settlebank, you can compare the effects of market volatilities on SSR and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR and Settlebank.
Diversification Opportunities for SSR and Settlebank
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSR and Settlebank is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SSR Inc and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of SSR i.e., SSR and Settlebank go up and down completely randomly.
Pair Corralation between SSR and Settlebank
Assuming the 90 days trading horizon SSR Inc is expected to generate 0.34 times more return on investment than Settlebank. However, SSR Inc is 2.92 times less risky than Settlebank. It trades about 0.35 of its potential returns per unit of risk. Settlebank is currently generating about -0.06 per unit of risk. If you would invest 322,000 in SSR Inc on August 25, 2024 and sell it today you would earn a total of 23,500 from holding SSR Inc or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSR Inc vs. Settlebank
Performance |
| Timeline |
| SSR Inc |
| Settlebank |
SSR and Settlebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR and Settlebank
The main advantage of trading using opposite SSR and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.| SSR vs. Dongbu Insurance Co | SSR vs. Ilji Technology Co | SSR vs. Dongil Metal Co | SSR vs. Guyoung Technology Co |
| Settlebank vs. Playgram Co | Settlebank vs. MediaZen | Settlebank vs. DC Media Co | Settlebank vs. Woori 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.
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