Correlation Between Samyung Trading and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Samyung Trading and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Grand Korea.
Diversification Opportunities for Samyung Trading and Grand Korea
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyung and Grand is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Samyung Trading i.e., Samyung Trading and Grand Korea go up and down completely randomly.
Pair Corralation between Samyung Trading and Grand Korea
Assuming the 90 days trading horizon Samyung Trading Co is expected to under-perform the Grand Korea. But the stock apears to be less risky and, when comparing its historical volatility, Samyung Trading Co is 1.54 times less risky than Grand Korea. The stock trades about -0.11 of its potential returns per unit of risk. The Grand Korea Leisure is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,173,000 in Grand Korea Leisure on November 5, 2024 and sell it today you would earn a total of 16,000 from holding Grand Korea Leisure or generate 1.36% 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. Grand Korea Leisure
Performance |
| Timeline |
| Samyung Trading |
| Grand Korea Leisure |
Samyung Trading and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Grand Korea
The main advantage of trading using opposite Samyung Trading and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Samyung Trading vs. Haitai Confectionery Foods | Samyung Trading vs. Kukil Metal Co | Samyung Trading vs. Seoul Food Industrial | Samyung Trading vs. Organic Special Pet |
| Grand Korea vs. Dongil Metal Co | Grand Korea vs. Samsung Life Insurance | Grand Korea vs. Hana Financial | Grand Korea vs. PJ Metal 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |