Correlation Between Ssangyong Information and Moadata
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Moadata 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 Ssangyong Information and Moadata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and Moadata Co, you can compare the effects of market volatilities on Ssangyong Information and Moadata 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 Ssangyong Information with a short position of Moadata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Moadata.
Diversification Opportunities for Ssangyong Information and Moadata
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssangyong and Moadata is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Moadata Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moadata and Ssangyong Information 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 Ssangyong Information Communication are associated (or correlated) with Moadata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moadata has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Moadata go up and down completely randomly.
Pair Corralation between Ssangyong Information and Moadata
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.45 times more return on investment than Moadata. However, Ssangyong Information Communication is 2.23 times less risky than Moadata. It trades about 0.05 of its potential returns per unit of risk. Moadata Co is currently generating about -0.1 per unit of risk. If you would invest 61,300 in Ssangyong Information Communication on October 3, 2024 and sell it today you would earn a total of 2,600 from holding Ssangyong Information Communication or generate 4.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ssangyong Information Communic vs. Moadata Co
Performance |
Timeline |
Ssangyong Information |
Moadata |
Ssangyong Information and Moadata Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ssangyong Information and Moadata
The main advantage of trading using opposite Ssangyong Information and Moadata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Moadata 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 Moadata will offset losses from the drop in Moadata's long position.Ssangyong Information vs. Settlebank | ||
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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