Correlation Between Ssangyong Materials and Genie Music
Can any of the company-specific risk be diversified away by investing in both Ssangyong Materials and Genie Music 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 Materials and Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Materials Corp and Genie Music, you can compare the effects of market volatilities on Ssangyong Materials and Genie Music 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 Materials with a short position of Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Materials and Genie Music.
Diversification Opportunities for Ssangyong Materials and Genie Music
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and Genie is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Materials Corp and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music and Ssangyong Materials 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 Materials Corp are associated (or correlated) with Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Ssangyong Materials i.e., Ssangyong Materials and Genie Music go up and down completely randomly.
Pair Corralation between Ssangyong Materials and Genie Music
Assuming the 90 days trading horizon Ssangyong Materials Corp is expected to generate 1.43 times more return on investment than Genie Music. However, Ssangyong Materials is 1.43 times more volatile than Genie Music. It trades about 0.02 of its potential returns per unit of risk. Genie Music is currently generating about -0.02 per unit of risk. If you would invest 241,921 in Ssangyong Materials Corp on September 26, 2024 and sell it today you would lose (20,921) from holding Ssangyong Materials Corp or give up 8.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ssangyong Materials Corp vs. Genie Music
Performance |
Timeline |
Ssangyong Materials Corp |
Genie Music |
Ssangyong Materials and Genie Music Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ssangyong Materials and Genie Music
The main advantage of trading using opposite Ssangyong Materials and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Materials position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.Ssangyong Materials vs. Koryo Credit Information | Ssangyong Materials vs. Pureun Mutual Savings | Ssangyong Materials vs. Nable Communications | Ssangyong Materials vs. Lotte Non Life Insurance |
Genie Music vs. Samyang Foods Co | Genie Music vs. Ssangyong Materials Corp | Genie Music vs. EV Advanced Material | Genie Music vs. Organic Special Pet |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |