Correlation Between Ssangyong Information and Access Bio

Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Access Bio 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 Access Bio 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 Access Bio, you can compare the effects of market volatilities on Ssangyong Information and Access Bio 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 Access Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Access Bio.

Diversification Opportunities for Ssangyong Information and Access Bio

0.09

Correlation Coefficient

Ssangyong Information  Access Bio

Significant diversification

The 3 months correlation between Ssangyong and Access is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Access Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Bio 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 Access Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Bio has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Access Bio go up and down completely randomly.

Pair Corralation between Ssangyong Information and Access Bio

Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 3.04 times more return on investment than Access Bio. However, Ssangyong Information is 3.04 times more volatile than Access Bio. It trades about 0.24 of its potential returns per unit of risk. Access Bio is currently generating about -0.01 per unit of risk. If you would invest  63,200  in Ssangyong Information Communication on December 2, 2024 and sell it today you would earn a total of  22,600  from holding Ssangyong Information Communication or generate 35.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ssangyong Information Communic  vs.  Access Bio

Ssangyong Information

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ssangyong Information Communication are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ssangyong Information sustained solid returns over the last few months and may actually be approaching a breakup point.

Access Bio

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Access Bio are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Access Bio may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ssangyong Information and Access Bio

The main advantage of trading using opposite Ssangyong Information and Access Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Access Bio 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 Access Bio will offset losses from the drop in Access Bio's long position.

The idea behind Ssangyong Information Communication and Access Bio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.