Correlation Between Samil Enterprise and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Samil Enterprise and Dow Jones 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 Samil Enterprise and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samil Enterprise Co and Dow Jones Industrial, you can compare the effects of market volatilities on Samil Enterprise and Dow Jones 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 Samil Enterprise with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samil Enterprise and Dow Jones.
Diversification Opportunities for Samil Enterprise and Dow Jones
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samil and Dow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Samil Enterprise Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Samil Enterprise 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 Samil Enterprise Co are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Samil Enterprise i.e., Samil Enterprise and Dow Jones go up and down completely randomly.
Pair Corralation between Samil Enterprise and Dow Jones
Assuming the 90 days trading horizon Samil Enterprise Co is expected to under-perform the Dow Jones. In addition to that, Samil Enterprise is 2.01 times more volatile than Dow Jones Industrial. It trades about -0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of volatility. If you would invest 3,815,030 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 658,627 from holding Dow Jones Industrial or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.22% |
| Values | Daily Returns |
Samil Enterprise Co vs. Dow Jones Industrial
Performance |
| Timeline |
Samil Enterprise and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Samil Enterprise Co
Pair trading matchups for Samil Enterprise
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Samil Enterprise and Dow Jones
The main advantage of trading using opposite Samil Enterprise and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samil Enterprise position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Samil Enterprise vs. Hanyang ENG Co | Samil Enterprise vs. Nam Hwa Construction | Samil Enterprise vs. KT Submarine Co | Samil Enterprise vs. Yooshin Engineering |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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