Correlation Between Samyung Trading and Hironic
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Hironic 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 Hironic 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 Hironic Co, you can compare the effects of market volatilities on Samyung Trading and Hironic 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 Hironic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Hironic.
Diversification Opportunities for Samyung Trading and Hironic
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyung and Hironic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Hironic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hironic 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 Hironic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hironic has no effect on the direction of Samyung Trading i.e., Samyung Trading and Hironic go up and down completely randomly.
Pair Corralation between Samyung Trading and Hironic
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.21 times more return on investment than Hironic. However, Samyung Trading Co is 4.7 times less risky than Hironic. It trades about -0.02 of its potential returns per unit of risk. Hironic Co is currently generating about -0.05 per unit of risk. If you would invest 1,267,000 in Samyung Trading Co on November 2, 2024 and sell it today you would lose (23,000) from holding Samyung Trading Co or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. Hironic Co
Performance |
| Timeline |
| Samyung Trading |
| Hironic |
Samyung Trading and Hironic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Hironic
The main advantage of trading using opposite Samyung Trading and Hironic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Hironic 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 Hironic will offset losses from the drop in Hironic's long position.| Samyung Trading vs. Cuckoo Electronics Co | Samyung Trading vs. SungMoon Electronics Co | Samyung Trading vs. Shinil Electronics Co | Samyung Trading vs. ABCO Electronics Co |
| Hironic vs. Daejung Chemicals Metals | Hironic vs. DB Financial Investment | Hironic vs. E Investment Development | Hironic vs. Miwon Chemicals 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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