Correlation Between SH Energy and Samlip General
Can any of the company-specific risk be diversified away by investing in both SH Energy and Samlip General 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 SH Energy and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SH Energy Chemical and Samlip General Foods, you can compare the effects of market volatilities on SH Energy and Samlip General 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 SH Energy with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of SH Energy and Samlip General.
Diversification Opportunities for SH Energy and Samlip General
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between 002360 and Samlip is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SH Energy Chemical and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and SH Energy 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 SH Energy Chemical are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of SH Energy i.e., SH Energy and Samlip General go up and down completely randomly.
Pair Corralation between SH Energy and Samlip General
Assuming the 90 days trading horizon SH Energy Chemical is expected to under-perform the Samlip General. But the stock apears to be less risky and, when comparing its historical volatility, SH Energy Chemical is 1.65 times less risky than Samlip General. The stock trades about -0.32 of its potential returns per unit of risk. The Samlip General Foods is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,685,000 in Samlip General Foods on December 1, 2024 and sell it today you would earn a total of 290,000 from holding Samlip General Foods or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SH Energy Chemical vs. Samlip General Foods
Performance |
| Timeline |
| SH Energy Chemical |
| Samlip General Foods |
SH Energy and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SH Energy and Samlip General
The main advantage of trading using opposite SH Energy and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SH Energy position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| SH Energy vs. FNSTech Co | SH Energy vs. Digital Imaging Technology | SH Energy vs. Korea Plasma Technology | SH Energy vs. Hanyang Digitech Co |
| Samlip General vs. Guyoung Technology Co | Samlip General vs. Global Standard Technology | Samlip General vs. NewFlex Technology Co | Samlip General vs. Incar Financial Service |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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