Correlation Between Samyung Trading and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and KTB Investment 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 KTB Investment 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 KTB Investment Securities, you can compare the effects of market volatilities on Samyung Trading and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and KTB Investment.
Diversification Opportunities for Samyung Trading and KTB Investment
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyung and KTB is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Samyung Trading i.e., Samyung Trading and KTB Investment go up and down completely randomly.
Pair Corralation between Samyung Trading and KTB Investment
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.48 times more return on investment than KTB Investment. However, Samyung Trading Co is 2.08 times less risky than KTB Investment. It trades about 0.04 of its potential returns per unit of risk. KTB Investment Securities is currently generating about 0.0 per unit of risk. If you would invest 1,190,852 in Samyung Trading Co on September 26, 2024 and sell it today you would earn a total of 133,148 from holding Samyung Trading Co or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. KTB Investment Securities
Performance |
| Timeline |
| Samyung Trading |
| KTB Investment Securities |
Samyung Trading and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and KTB Investment
The main advantage of trading using opposite Samyung Trading and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Wonbang Tech Co | Samyung Trading vs. Busan Industrial Co | Samyung Trading vs. Busan Ind |
| KTB Investment vs. Ssangyong Information Communication | KTB Investment vs. Samyung Trading Co | KTB Investment vs. TS Investment Corp | KTB Investment vs. Sangsangin Investment Securities |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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