Correlation Between Samyung Trading and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and CS BEARING 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 CS BEARING 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 CS BEARING CoLtd, you can compare the effects of market volatilities on Samyung Trading and CS BEARING 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 CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and CS BEARING.
Diversification Opportunities for Samyung Trading and CS BEARING
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyung and 297090 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd 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 CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Samyung Trading i.e., Samyung Trading and CS BEARING go up and down completely randomly.
Pair Corralation between Samyung Trading and CS BEARING
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.22 times more return on investment than CS BEARING. However, Samyung Trading Co is 4.63 times less risky than CS BEARING. It trades about 0.09 of its potential returns per unit of risk. CS BEARING CoLtd is currently generating about 0.01 per unit of risk. If you would invest 1,270,000 in Samyung Trading Co on September 13, 2024 and sell it today you would earn a total of 23,000 from holding Samyung Trading Co or generate 1.81% 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. CS BEARING CoLtd
Performance |
| Timeline |
| Samyung Trading |
| CS BEARING CoLtd |
Samyung Trading and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and CS BEARING
The main advantage of trading using opposite Samyung Trading and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING'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 |
| CS BEARING vs. Jeju Beer Co | CS BEARING vs. Bohae Brewery | CS BEARING vs. Guyoung Technology Co | CS BEARING vs. Woori Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |