Correlation Between MediaZen and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both MediaZen and Ssangyong Information 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 MediaZen and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaZen and Ssangyong Information Communication, you can compare the effects of market volatilities on MediaZen and Ssangyong Information 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 MediaZen with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaZen and Ssangyong Information.
Diversification Opportunities for MediaZen and Ssangyong Information
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between MediaZen and Ssangyong is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MediaZen and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and MediaZen 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 MediaZen are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of MediaZen i.e., MediaZen and Ssangyong Information go up and down completely randomly.
Pair Corralation between MediaZen and Ssangyong Information
If you would invest 60,100 in Ssangyong Information Communication on August 26, 2024 and sell it today you would earn a total of 1,500 from holding Ssangyong Information Communication or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
MediaZen vs. Ssangyong Information Communic
Performance |
| Timeline |
| MediaZen |
| Ssangyong Information |
MediaZen and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaZen and Ssangyong Information
The main advantage of trading using opposite MediaZen and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaZen position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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