Correlation Between Samyung Trading and KCC
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and KCC 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 KCC 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 KCC Corporation, you can compare the effects of market volatilities on Samyung Trading and KCC 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 KCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and KCC.
Diversification Opportunities for Samyung Trading and KCC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyung and KCC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and KCC Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCC Corporation 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 KCC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCC Corporation has no effect on the direction of Samyung Trading i.e., Samyung Trading and KCC go up and down completely randomly.
Pair Corralation between Samyung Trading and KCC
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.28 times more return on investment than KCC. However, Samyung Trading Co is 3.56 times less risky than KCC. It trades about 0.0 of its potential returns per unit of risk. KCC Corporation is currently generating about -0.03 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 0.00 from holding Samyung Trading Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. KCC Corp.
Performance |
| Timeline |
| Samyung Trading |
| KCC Corporation |
Samyung Trading and KCC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and KCC
The main advantage of trading using opposite Samyung Trading and KCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, KCC 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 KCC will offset losses from the drop in KCC'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 |
| KCC vs. Cuckoo Homesys Co | KCC vs. Hyundai Home Shopping | KCC vs. Korea Investment Holdings | KCC vs. Samyung Trading Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |