Correlation Between Samhwa Paint and Pyung Hwa
Can any of the company-specific risk be diversified away by investing in both Samhwa Paint and Pyung Hwa 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 Samhwa Paint and Pyung Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhwa Paint Industrial and Pyung Hwa Industrial, you can compare the effects of market volatilities on Samhwa Paint and Pyung Hwa 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 Samhwa Paint with a short position of Pyung Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhwa Paint and Pyung Hwa.
Diversification Opportunities for Samhwa Paint and Pyung Hwa
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samhwa and Pyung is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samhwa Paint Industrial and Pyung Hwa Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyung Hwa Industrial and Samhwa Paint 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 Samhwa Paint Industrial are associated (or correlated) with Pyung Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyung Hwa Industrial has no effect on the direction of Samhwa Paint i.e., Samhwa Paint and Pyung Hwa go up and down completely randomly.
Pair Corralation between Samhwa Paint and Pyung Hwa
Assuming the 90 days trading horizon Samhwa Paint Industrial is expected to generate 1.25 times more return on investment than Pyung Hwa. However, Samhwa Paint is 1.25 times more volatile than Pyung Hwa Industrial. It trades about -0.07 of its potential returns per unit of risk. Pyung Hwa Industrial is currently generating about -0.11 per unit of risk. If you would invest 832,000 in Samhwa Paint Industrial on September 2, 2024 and sell it today you would lose (183,000) from holding Samhwa Paint Industrial or give up 22.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhwa Paint Industrial vs. Pyung Hwa Industrial
Performance |
| Timeline |
| Samhwa Paint Industrial |
| Pyung Hwa Industrial |
Samhwa Paint and Pyung Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhwa Paint and Pyung Hwa
The main advantage of trading using opposite Samhwa Paint and Pyung Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhwa Paint position performs unexpectedly, Pyung Hwa 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 Pyung Hwa will offset losses from the drop in Pyung Hwa's long position.| Samhwa Paint vs. AptaBio Therapeutics | Samhwa Paint vs. Daewoo SBI SPAC | Samhwa Paint vs. Dream Security co | Samhwa Paint vs. Microfriend |
| Pyung Hwa vs. AptaBio Therapeutics | Pyung Hwa vs. Daewoo SBI SPAC | Pyung Hwa vs. Dream Security co | Pyung Hwa vs. Microfriend |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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