Correlation Between Dongbang Transport and Samlip General
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Samlip General 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 Dongbang Transport and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Samlip General Foods, you can compare the effects of market volatilities on Dongbang Transport and Samlip General 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 Dongbang Transport with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Samlip General.
Diversification Opportunities for Dongbang Transport and Samlip General
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongbang and Samlip is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Dongbang Transport 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 Dongbang Transport Logistics are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Samlip General go up and down completely randomly.
Pair Corralation between Dongbang Transport and Samlip General
Assuming the 90 days trading horizon Dongbang Transport is expected to generate 1.65 times less return on investment than Samlip General. In addition to that, Dongbang Transport is 1.08 times more volatile than Samlip General Foods. It trades about 0.29 of its total potential returns per unit of risk. Samlip General Foods is currently generating about 0.51 per unit of volatility. If you would invest 4,476,569 in Samlip General Foods on October 11, 2024 and sell it today you would earn a total of 913,431 from holding Samlip General Foods or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Samlip General Foods
Performance |
| Timeline |
| Dongbang Transport |
| Samlip General Foods |
Dongbang Transport and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Samlip General
The main advantage of trading using opposite Dongbang Transport and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Dongbang Transport vs. Sajo Seafood | Dongbang Transport vs. DONGKUK TED METAL | Dongbang Transport vs. Osang Healthcare Co,Ltd | Dongbang Transport vs. Chorokbaem Healthcare Co |
| Samlip General vs. Dongbang Transport Logistics | Samlip General vs. KMH Hitech Co | Samlip General vs. V One Tech Co | Samlip General vs. Raontech |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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