Correlation Between Samyung Trading and Bukwang Pharm
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Bukwang Pharm 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 Bukwang Pharm 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 Bukwang Pharm, you can compare the effects of market volatilities on Samyung Trading and Bukwang Pharm 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 Bukwang Pharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Bukwang Pharm.
Diversification Opportunities for Samyung Trading and Bukwang Pharm
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samyung and Bukwang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Bukwang Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukwang Pharm 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 Bukwang Pharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukwang Pharm has no effect on the direction of Samyung Trading i.e., Samyung Trading and Bukwang Pharm go up and down completely randomly.
Pair Corralation between Samyung Trading and Bukwang Pharm
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.2 times more return on investment than Bukwang Pharm. However, Samyung Trading Co is 5.07 times less risky than Bukwang Pharm. It trades about 0.1 of its potential returns per unit of risk. Bukwang Pharm is currently generating about -0.06 per unit of risk. If you would invest 1,268,000 in Samyung Trading Co on September 2, 2024 and sell it today you would earn a total of 32,000 from holding Samyung Trading Co or generate 2.52% 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. Bukwang Pharm
Performance |
| Timeline |
| Samyung Trading |
| Bukwang Pharm |
Samyung Trading and Bukwang Pharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Bukwang Pharm
The main advantage of trading using opposite Samyung Trading and Bukwang Pharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Bukwang Pharm 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 Bukwang Pharm will offset losses from the drop in Bukwang Pharm's long position.| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
| Bukwang Pharm vs. Samyung Trading Co | Bukwang Pharm vs. Daiyang Metal Co | Bukwang Pharm vs. E Investment Development | Bukwang Pharm vs. DONGKUK TED 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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