Correlation Between Taeyang Metal and Sam A
Can any of the company-specific risk be diversified away by investing in both Taeyang Metal and Sam A 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 Taeyang Metal and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taeyang Metal Industrial and Sam A Pharm Co, you can compare the effects of market volatilities on Taeyang Metal and Sam A 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 Taeyang Metal with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taeyang Metal and Sam A.
Diversification Opportunities for Taeyang Metal and Sam A
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taeyang and Sam is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Taeyang Metal Industrial and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm and Taeyang Metal 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 Taeyang Metal Industrial are associated (or correlated) with Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Taeyang Metal i.e., Taeyang Metal and Sam A go up and down completely randomly.
Pair Corralation between Taeyang Metal and Sam A
Assuming the 90 days trading horizon Taeyang Metal Industrial is expected to under-perform the Sam A. In addition to that, Taeyang Metal is 2.01 times more volatile than Sam A Pharm Co. It trades about -0.33 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.6 per unit of volatility. If you would invest 2,155,000 in Sam A Pharm Co on September 4, 2024 and sell it today you would lose (433,000) from holding Sam A Pharm Co or give up 20.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taeyang Metal Industrial vs. Sam A Pharm Co
Performance |
| Timeline |
| Taeyang Metal Industrial |
| Sam A Pharm |
Taeyang Metal and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taeyang Metal and Sam A
The main advantage of trading using opposite Taeyang Metal and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taeyang Metal position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Taeyang Metal vs. AptaBio Therapeutics | Taeyang Metal vs. Daewoo SBI SPAC | Taeyang Metal vs. Dream Security co | Taeyang Metal vs. Microfriend |
| Sam A vs. Taeyang Metal Industrial | Sam A vs. Youngsin Metal Industrial | Sam A vs. Duksan Hi Metal | Sam A vs. Shinhan Inverse Copper |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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