Correlation Between Sangsin Energy and Hanwha InvestmentSecuri

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Hanwha InvestmentSecuri 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 Sangsin Energy and Hanwha InvestmentSecuri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Sangsin Energy and Hanwha InvestmentSecuri 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 Sangsin Energy with a short position of Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Hanwha InvestmentSecuri.

Diversification Opportunities for Sangsin Energy and Hanwha InvestmentSecuri

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sangsin and Hanwha is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri and Sangsin Energy 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 Sangsin Energy Display are associated (or correlated) with Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Hanwha InvestmentSecuri go up and down completely randomly.

Pair Corralation between Sangsin Energy and Hanwha InvestmentSecuri

Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Hanwha InvestmentSecuri. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 2.2 times less risky than Hanwha InvestmentSecuri. The stock trades about -0.22 of its potential returns per unit of risk. The Hanwha InvestmentSecurities Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  629,000  in Hanwha InvestmentSecurities Co on September 10, 2024 and sell it today you would earn a total of  146,000  from holding Hanwha InvestmentSecurities Co or generate 23.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Sangsin Energy Display  vs.  Hanwha InvestmentSecurities Co

 Performance 
       Timeline  
Sangsin Energy Display 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sangsin Energy Display has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Hanwha InvestmentSecuri 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Hanwha InvestmentSecurities Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hanwha InvestmentSecuri sustained solid returns over the last few months and may actually be approaching a breakup point.

Sangsin Energy and Hanwha InvestmentSecuri Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sangsin Energy and Hanwha InvestmentSecuri

The main advantage of trading using opposite Sangsin Energy and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.
The idea behind Sangsin Energy Display and Hanwha InvestmentSecurities Co 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

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
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities