Correlation Between Husteel and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Husteel and Samyoung Electronics 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 Husteel and Samyoung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and Samyoung Electronics Co, you can compare the effects of market volatilities on Husteel and Samyoung Electronics 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 Husteel with a short position of Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and Samyoung Electronics.
Diversification Opportunities for Husteel and Samyoung Electronics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Husteel and Samyoung is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Husteel and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics and Husteel 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 Husteel are associated (or correlated) with Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Husteel i.e., Husteel and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Husteel and Samyoung Electronics
Assuming the 90 days trading horizon Husteel is expected to under-perform the Samyoung Electronics. In addition to that, Husteel is 1.42 times more volatile than Samyoung Electronics Co. It trades about -0.04 of its total potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 965,059 in Samyoung Electronics Co on August 29, 2024 and sell it today you would earn a total of 53,941 from holding Samyoung Electronics Co or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Husteel vs. Samyoung Electronics Co
Performance |
| Timeline |
| Husteel |
| Samyoung Electronics |
Husteel and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and Samyoung Electronics
The main advantage of trading using opposite Husteel and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Husteel vs. LG Chemicals | Husteel vs. Lotte Chemical Corp | Husteel vs. Hyundai Steel | Husteel vs. Seah Steel Corp |
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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |