Correlation Between Samyung Trading and SH Energy
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and SH Energy 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 Samyung Trading and SH Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyung Trading Co and SH Energy Chemical, you can compare the effects of market volatilities on Samyung Trading and SH Energy 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 Samyung Trading with a short position of SH Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and SH Energy.
Diversification Opportunities for Samyung Trading and SH Energy
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyung and 002360 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and SH Energy Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SH Energy Chemical and Samyung Trading 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 Samyung Trading Co are associated (or correlated) with SH Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SH Energy Chemical has no effect on the direction of Samyung Trading i.e., Samyung Trading and SH Energy go up and down completely randomly.
Pair Corralation between Samyung Trading and SH Energy
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.21 times more return on investment than SH Energy. However, Samyung Trading Co is 4.73 times less risky than SH Energy. It trades about 0.05 of its potential returns per unit of risk. SH Energy Chemical is currently generating about -0.04 per unit of risk. If you would invest 1,281,000 in Samyung Trading Co on September 12, 2024 and sell it today you would earn a total of 12,000 from holding Samyung Trading Co or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. SH Energy Chemical
Performance |
| Timeline |
| Samyung Trading |
| SH Energy Chemical |
Samyung Trading and SH Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and SH Energy
The main advantage of trading using opposite Samyung Trading and SH Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, SH Energy 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 SH Energy will offset losses from the drop in SH Energy's long position.| Samyung Trading vs. Samsung Electronics Co | Samyung Trading vs. Samsung Electronics Co | Samyung Trading vs. SK Hynix | Samyung Trading vs. POSCO Holdings |
| SH Energy vs. Samsung Electronics Co | SH Energy vs. Samsung Electronics Co | SH Energy vs. SK Hynix | SH Energy vs. POSCO Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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