Correlation Between Samyung Trading and Daishin Information
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Daishin Information 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 Daishin Information 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 Daishin Information Communications, you can compare the effects of market volatilities on Samyung Trading and Daishin Information 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 Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Daishin Information.
Diversification Opportunities for Samyung Trading and Daishin Information
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyung and Daishin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information 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 Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of Samyung Trading i.e., Samyung Trading and Daishin Information go up and down completely randomly.
Pair Corralation between Samyung Trading and Daishin Information
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.44 times more return on investment than Daishin Information. However, Samyung Trading Co is 2.27 times less risky than Daishin Information. It trades about 0.02 of its potential returns per unit of risk. Daishin Information Communications is currently generating about -0.04 per unit of risk. If you would invest 1,199,275 in Samyung Trading Co on September 2, 2024 and sell it today you would earn a total of 100,725 from holding Samyung Trading Co or generate 8.4% 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. Daishin Information Communicat
Performance |
| Timeline |
| Samyung Trading |
| Daishin Information |
Samyung Trading and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Daishin Information
The main advantage of trading using opposite Samyung Trading and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information's long position.| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
| Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind | Daishin Information vs. Mirae Asset Daewoo | Daishin Information vs. Finebesteel |
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.
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