Correlation Between Samyung Trading and Ajusteel
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Ajusteel 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 Ajusteel 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 Ajusteel Co, you can compare the effects of market volatilities on Samyung Trading and Ajusteel 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 Ajusteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Ajusteel.
Diversification Opportunities for Samyung Trading and Ajusteel
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samyung and Ajusteel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Ajusteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajusteel 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 Ajusteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajusteel has no effect on the direction of Samyung Trading i.e., Samyung Trading and Ajusteel go up and down completely randomly.
Pair Corralation between Samyung Trading and Ajusteel
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.21 times more return on investment than Ajusteel. However, Samyung Trading Co is 4.87 times less risky than Ajusteel. It trades about 0.22 of its potential returns per unit of risk. Ajusteel Co is currently generating about -0.38 per unit of risk. If you would invest 1,274,000 in Samyung Trading Co on September 1, 2024 and sell it today you would earn a total of 26,000 from holding Samyung Trading Co or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samyung Trading Co vs. Ajusteel Co
Performance |
| Timeline |
| Samyung Trading |
| Ajusteel |
Samyung Trading and Ajusteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Ajusteel
The main advantage of trading using opposite Samyung Trading and Ajusteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Ajusteel 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 Ajusteel will offset losses from the drop in Ajusteel's long position.| Samyung Trading vs. Dongwon Metal Co | Samyung Trading vs. Shinhan Inverse Copper | Samyung Trading vs. Alton Sports CoLtd | Samyung Trading vs. Daejung Chemicals Metals |
| Ajusteel vs. Korea Information Communications | Ajusteel vs. Sungdo Engineering Construction | Ajusteel vs. Dongwoo Farm To | Ajusteel vs. Shinsegae Information Communication |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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