Correlation Between Bukwang Pharm and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Bukwang Pharm and Samyung Trading 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 Bukwang Pharm and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukwang Pharm and Samyung Trading Co, you can compare the effects of market volatilities on Bukwang Pharm and Samyung Trading 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 Bukwang Pharm with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukwang Pharm and Samyung Trading.
Diversification Opportunities for Bukwang Pharm and Samyung Trading
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bukwang and Samyung is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bukwang Pharm and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Bukwang Pharm 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 Bukwang Pharm are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Bukwang Pharm i.e., Bukwang Pharm and Samyung Trading go up and down completely randomly.
Pair Corralation between Bukwang Pharm and Samyung Trading
Assuming the 90 days trading horizon Bukwang Pharm is expected to under-perform the Samyung Trading. In addition to that, Bukwang Pharm is 5.07 times more volatile than Samyung Trading Co. It trades about -0.06 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.1 per unit of volatility. If you would invest 1,268,000 in Samyung Trading Co on September 2, 2024 and sell it today you would earn a total of 32,000 from holding Samyung Trading Co or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bukwang Pharm vs. Samyung Trading Co
Performance |
| Timeline |
| Bukwang Pharm |
| Samyung Trading |
Bukwang Pharm and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukwang Pharm and Samyung Trading
The main advantage of trading using opposite Bukwang Pharm and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukwang Pharm position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Bukwang Pharm vs. Samyung Trading Co | Bukwang Pharm vs. Daiyang Metal Co | Bukwang Pharm vs. E Investment Development | Bukwang Pharm vs. DONGKUK TED METAL |
| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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