Correlation Between BGF Retail and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both BGF Retail and Sangsin Energy 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 BGF Retail and Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and Sangsin Energy Display, you can compare the effects of market volatilities on BGF Retail and Sangsin Energy 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 BGF Retail with a short position of Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and Sangsin Energy.
Diversification Opportunities for BGF Retail and Sangsin Energy
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGF and Sangsin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display and BGF Retail 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 BGF Retail Co are associated (or correlated) with Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of BGF Retail i.e., BGF Retail and Sangsin Energy go up and down completely randomly.
Pair Corralation between BGF Retail and Sangsin Energy
Assuming the 90 days trading horizon BGF Retail Co is expected to generate 0.91 times more return on investment than Sangsin Energy. However, BGF Retail Co is 1.1 times less risky than Sangsin Energy. It trades about -0.08 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.41 per unit of risk. If you would invest 11,200,000 in BGF Retail Co on August 29, 2024 and sell it today you would lose (500,000) from holding BGF Retail Co or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. Sangsin Energy Display
Performance |
| Timeline |
| BGF Retail |
| Sangsin Energy Display |
BGF Retail and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and Sangsin Energy
The main advantage of trading using opposite BGF Retail and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| BGF Retail vs. AptaBio Therapeutics | BGF Retail vs. Daewoo SBI SPAC | BGF Retail vs. Dream Security co | BGF Retail vs. Microfriend |
| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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