Correlation Between Samyung Trading and MPLUS Corp
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and MPLUS Corp 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 MPLUS Corp 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 mPLUS Corp, you can compare the effects of market volatilities on Samyung Trading and MPLUS Corp 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 MPLUS Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and MPLUS Corp.
Diversification Opportunities for Samyung Trading and MPLUS Corp
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyung and MPLUS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and mPLUS Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mPLUS Corp 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 MPLUS Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mPLUS Corp has no effect on the direction of Samyung Trading i.e., Samyung Trading and MPLUS Corp go up and down completely randomly.
Pair Corralation between Samyung Trading and MPLUS Corp
Assuming the 90 days trading horizon Samyung Trading is expected to generate 1.84 times less return on investment than MPLUS Corp. But when comparing it to its historical volatility, Samyung Trading Co is 4.86 times less risky than MPLUS Corp. It trades about 0.15 of its potential returns per unit of risk. mPLUS Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 771,000 in mPLUS Corp on September 14, 2024 and sell it today you would earn a total of 26,000 from holding mPLUS Corp or generate 3.37% 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. mPLUS Corp
Performance |
| Timeline |
| Samyung Trading |
| mPLUS Corp |
Samyung Trading and MPLUS Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and MPLUS Corp
The main advantage of trading using opposite Samyung Trading and MPLUS Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, MPLUS Corp 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 MPLUS Corp will offset losses from the drop in MPLUS Corp's long position.| Samyung Trading vs. Hyundai Home Shopping | Samyung Trading vs. Hansol Homedeco Co | Samyung Trading vs. Jeju Air Co | Samyung Trading vs. Pyung Hwa Industrial |
| MPLUS Corp vs. Ecopro BM Co | MPLUS Corp vs. Sangsin Energy Display | MPLUS Corp vs. Solution Advanced Technology | MPLUS Corp vs. Busan Industrial 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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