Correlation Between Sangsangin Investment and FLITTO
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and FLITTO 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 Sangsangin Investment and FLITTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and FLITTO Inc, you can compare the effects of market volatilities on Sangsangin Investment and FLITTO 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 Sangsangin Investment with a short position of FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and FLITTO.
Diversification Opportunities for Sangsangin Investment and FLITTO
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsangin and FLITTO is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and FLITTO go up and down completely randomly.
Pair Corralation between Sangsangin Investment and FLITTO
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the FLITTO. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 3.85 times less risky than FLITTO. The stock trades about -0.12 of its potential returns per unit of risk. The FLITTO Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,625,000 in FLITTO Inc on September 11, 2024 and sell it today you would lose (55,000) from holding FLITTO Inc or give up 3.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sangsangin Investment Securiti vs. FLITTO Inc
Performance |
Timeline |
Sangsangin Investment |
FLITTO Inc |
Sangsangin Investment and FLITTO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sangsangin Investment and FLITTO
The main advantage of trading using opposite Sangsangin Investment and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.Sangsangin Investment vs. JUSUNG ENGINEERING Co | Sangsangin Investment vs. Winix Inc | Sangsangin Investment vs. AfreecaTV Co | Sangsangin Investment vs. Busan Industrial Co |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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