Correlation Between Sangsangin Investment and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Samsung Fire 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 Samsung Fire 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 Samsung Fire Marine, you can compare the effects of market volatilities on Sangsangin Investment and Samsung Fire 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 Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Samsung Fire.
Diversification Opportunities for Sangsangin Investment and Samsung Fire
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sangsangin and Samsung is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine 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 Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Samsung Fire go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Samsung Fire
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Samsung Fire. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 1.41 times less risky than Samsung Fire. The stock trades about -0.09 of its potential returns per unit of risk. The Samsung Fire Marine is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,135,600 in Samsung Fire Marine on September 12, 2024 and sell it today you would earn a total of 12,264,400 from holding Samsung Fire Marine or generate 50.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Samsung Fire Marine
Performance |
| Timeline |
| Sangsangin Investment |
| Samsung Fire Marine |
Sangsangin Investment and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Samsung Fire
The main advantage of trading using opposite Sangsangin Investment and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.| Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Woori Financial Group |
| Samsung Fire vs. Sangsangin Investment Securities | Samsung Fire vs. Kbi Metal Co | Samsung Fire vs. MetaLabs Co | Samsung Fire vs. Hanjoo Light Metal |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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