Correlation Between SK Bioscience and Seegene
Can any of the company-specific risk be diversified away by investing in both SK Bioscience and Seegene 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 SK Bioscience and Seegene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and Seegene, you can compare the effects of market volatilities on SK Bioscience and Seegene 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 SK Bioscience with a short position of Seegene. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and Seegene.
Diversification Opportunities for SK Bioscience and Seegene
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 302440 and Seegene is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene and SK Bioscience 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 SK Bioscience Co are associated (or correlated) with Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of SK Bioscience i.e., SK Bioscience and Seegene go up and down completely randomly.
Pair Corralation between SK Bioscience and Seegene
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the Seegene. In addition to that, SK Bioscience is 1.23 times more volatile than Seegene. It trades about -0.07 of its total potential returns per unit of risk. Seegene is currently generating about -0.08 per unit of volatility. If you would invest 2,575,077 in Seegene on August 29, 2024 and sell it today you would lose (260,077) from holding Seegene or give up 10.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. Seegene
Performance |
| Timeline |
| SK Bioscience |
| Seegene |
SK Bioscience and Seegene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and Seegene
The main advantage of trading using opposite SK Bioscience and Seegene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience position performs unexpectedly, Seegene 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 Seegene will offset losses from the drop in Seegene's long position.| SK Bioscience vs. Samsung Biologics Co | SK Bioscience vs. Sk Biopharmaceuticals Co | SK Bioscience vs. ABL Bio | SK Bioscience vs. Green Cross Lab |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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