Correlation Between Samyung Trading and OCI Co
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and OCI Co 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 OCI Co 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 OCI Co, you can compare the effects of market volatilities on Samyung Trading and OCI Co 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 OCI Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and OCI Co.
Diversification Opportunities for Samyung Trading and OCI Co
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyung and OCI is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and OCI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI Co 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 OCI Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI Co has no effect on the direction of Samyung Trading i.e., Samyung Trading and OCI Co go up and down completely randomly.
Pair Corralation between Samyung Trading and OCI Co
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.42 times more return on investment than OCI Co. However, Samyung Trading Co is 2.39 times less risky than OCI Co. It trades about 0.04 of its potential returns per unit of risk. OCI Co is currently generating about -0.06 per unit of risk. If you would invest 1,188,946 in Samyung Trading Co on September 14, 2024 and sell it today you would earn a total of 111,054 from holding Samyung Trading Co or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Samyung Trading Co vs. OCI Co
Performance |
| Timeline |
| Samyung Trading |
| OCI Co |
Samyung Trading and OCI Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and OCI Co
The main advantage of trading using opposite Samyung Trading and OCI Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, OCI Co 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 OCI Co will offset losses from the drop in OCI Co's long position.| Samyung Trading vs. Hyundai Home Shopping | Samyung Trading vs. Hansol Homedeco Co | Samyung Trading vs. Jeju Air Co | Samyung Trading vs. Pyung Hwa Industrial |
| OCI Co vs. Solution Advanced Technology | OCI Co vs. Koh Young Technology | OCI Co vs. Hwangkum Steel Technology | OCI Co vs. Organic Special Pet |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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