Correlation Between Sangsin Energy and Digital Imaging
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Digital Imaging 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 Digital Imaging 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 Digital Imaging Technology, you can compare the effects of market volatilities on Sangsin Energy and Digital Imaging 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 Digital Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Digital Imaging.
Diversification Opportunities for Sangsin Energy and Digital Imaging
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsin and Digital is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Digital Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Imaging Tech 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 Digital Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Imaging Tech has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Digital Imaging go up and down completely randomly.
Pair Corralation between Sangsin Energy and Digital Imaging
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Digital Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Sangsin Energy Display is 2.02 times less risky than Digital Imaging. The stock trades about -0.08 of its potential returns per unit of risk. The Digital Imaging Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 967,494 in Digital Imaging Technology on October 22, 2024 and sell it today you would earn a total of 693,506 from holding Digital Imaging Technology or generate 71.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sangsin Energy Display vs. Digital Imaging Technology
Performance |
Timeline |
Sangsin Energy Display |
Digital Imaging Tech |
Sangsin Energy and Digital Imaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sangsin Energy and Digital Imaging
The main advantage of trading using opposite Sangsin Energy and Digital Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Digital Imaging 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 Digital Imaging will offset losses from the drop in Digital Imaging's long position.Sangsin Energy vs. Bosung Power Technology | Sangsin Energy vs. Eugene Technology CoLtd | Sangsin Energy vs. Hana Technology Co | Sangsin Energy vs. iNtRON Biotechnology |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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