Correlation Between Samsung Fire and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Samsung Fire and Inzi Display 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 Samsung Fire and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Fire Marine and Inzi Display CoLtd, you can compare the effects of market volatilities on Samsung Fire and Inzi Display 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 Samsung Fire with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Fire and Inzi Display.
Diversification Opportunities for Samsung Fire and Inzi Display
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Inzi is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Fire Marine and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Samsung Fire 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 Samsung Fire Marine are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Samsung Fire i.e., Samsung Fire and Inzi Display go up and down completely randomly.
Pair Corralation between Samsung Fire and Inzi Display
Assuming the 90 days trading horizon Samsung Fire Marine is expected to generate 0.69 times more return on investment than Inzi Display. However, Samsung Fire Marine is 1.45 times less risky than Inzi Display. It trades about 0.08 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.0 per unit of risk. If you would invest 18,921,200 in Samsung Fire Marine on September 3, 2024 and sell it today you would earn a total of 20,328,800 from holding Samsung Fire Marine or generate 107.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Fire Marine vs. Inzi Display CoLtd
Performance |
| Timeline |
| Samsung Fire Marine |
| Inzi Display CoLtd |
Samsung Fire and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Fire and Inzi Display
The main advantage of trading using opposite Samsung Fire and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Fire position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Samsung Fire vs. Inzi Display CoLtd | Samsung Fire vs. Samyoung Electronics Co | Samsung Fire vs. Display Tech Co | Samsung Fire vs. KyungIn Electronics Co |
| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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