Correlation Between Samyung Trading and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Samyung Trading and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Daewoo SBI.
Diversification Opportunities for Samyung Trading and Daewoo SBI
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyung and Daewoo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Samyung Trading i.e., Samyung Trading and Daewoo SBI go up and down completely randomly.
Pair Corralation between Samyung Trading and Daewoo SBI
Assuming the 90 days trading horizon Samyung Trading is expected to generate 10.75 times less return on investment than Daewoo SBI. But when comparing it to its historical volatility, Samyung Trading Co is 4.26 times less risky than Daewoo SBI. It trades about 0.09 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 246,000 in Daewoo SBI SPAC on September 13, 2024 and sell it today you would earn a total of 50,500 from holding Daewoo SBI SPAC or generate 20.53% 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. Daewoo SBI SPAC
Performance |
| Timeline |
| Samyung Trading |
| Daewoo SBI SPAC |
Samyung Trading and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Daewoo SBI
The main advantage of trading using opposite Samyung Trading and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Samyung Trading vs. Samsung Electronics Co | Samyung Trading vs. Samsung Electronics Co | Samyung Trading vs. SK Hynix | Samyung Trading vs. POSCO Holdings |
| Daewoo SBI vs. Korea Information Engineering | Daewoo SBI vs. LG Chemicals | Daewoo SBI vs. SK Chemicals Co | Daewoo SBI vs. Daesung Hi Tech 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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