Correlation Between Samhwa Paint and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Samhwa Paint and PJ Metal 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 PJ Metal 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 PJ Metal Co, you can compare the effects of market volatilities on Samhwa Paint and PJ Metal 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhwa Paint and PJ Metal.
Diversification Opportunities for Samhwa Paint and PJ Metal
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samhwa and 128660 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samhwa Paint Industrial and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Samhwa Paint i.e., Samhwa Paint and PJ Metal go up and down completely randomly.
Pair Corralation between Samhwa Paint and PJ Metal
Assuming the 90 days trading horizon Samhwa Paint Industrial is expected to under-perform the PJ Metal. In addition to that, Samhwa Paint is 1.21 times more volatile than PJ Metal Co. It trades about -0.2 of its total potential returns per unit of risk. PJ Metal Co is currently generating about -0.16 per unit of volatility. If you would invest 327,000 in PJ Metal Co on August 29, 2024 and sell it today you would lose (20,000) from holding PJ Metal Co or give up 6.12% 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. PJ Metal Co
Performance |
| Timeline |
| Samhwa Paint Industrial |
| PJ Metal |
Samhwa Paint and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhwa Paint and PJ Metal
The main advantage of trading using opposite Samhwa Paint and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhwa Paint position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Samhwa Paint vs. AptaBio Therapeutics | Samhwa Paint vs. Daewoo SBI SPAC | Samhwa Paint vs. Dream Security co | Samhwa Paint vs. Microfriend |
| PJ Metal vs. Keum Kang Steel | PJ Metal vs. Tplex Co | PJ Metal vs. Samhyun Steel Co | PJ Metal vs. Wonil Special Steel |
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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