Correlation Between SV Investment and Sung Bo
Can any of the company-specific risk be diversified away by investing in both SV Investment 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 SV Investment and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SV Investment and Sung Bo Chemicals, you can compare the effects of market volatilities on SV Investment 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 SV Investment with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SV Investment and Sung Bo.
Diversification Opportunities for SV Investment and Sung Bo
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 289080 and Sung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SV Investment 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 SV Investment 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 SV Investment 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 SV Investment i.e., SV Investment and Sung Bo go up and down completely randomly.
Pair Corralation between SV Investment and Sung Bo
Assuming the 90 days trading horizon SV Investment is expected to generate 30.5 times less return on investment than Sung Bo. In addition to that, SV Investment is 1.34 times more volatile than Sung Bo Chemicals. It trades about 0.0 of its total potential returns per unit of risk. Sung Bo Chemicals is currently generating about 0.16 per unit of volatility. If you would invest 246,422 in Sung Bo Chemicals on October 24, 2024 and sell it today you would earn a total of 7,578 from holding Sung Bo Chemicals or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SV Investment vs. Sung Bo Chemicals
Performance |
| Timeline |
| SV Investment |
| Sung Bo Chemicals |
SV Investment and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SV Investment and Sung Bo
The main advantage of trading using opposite SV Investment and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SV Investment 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.| SV Investment vs. Aprogen Healthcare Games | SV Investment vs. KEPCO Engineering Construction | SV Investment vs. KCC Engineering Construction | SV Investment vs. DoubleU Games Co |
| Sung Bo vs. AptaBio Therapeutics | Sung Bo vs. Daewoo SBI SPAC | Sung Bo vs. Dream Security co | Sung Bo vs. Microfriend |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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