Correlation Between POSCO Holdings and Samyoung M
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Samyoung M 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 POSCO Holdings and Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Samyoung M Tek Co, you can compare the effects of market volatilities on POSCO Holdings and Samyoung M 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 POSCO Holdings with a short position of Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Samyoung M.
Diversification Opportunities for POSCO Holdings and Samyoung M
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POSCO and Samyoung is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Samyoung M go up and down completely randomly.
Pair Corralation between POSCO Holdings and Samyoung M
Assuming the 90 days trading horizon POSCO Holdings is expected to under-perform the Samyoung M. But the stock apears to be less risky and, when comparing its historical volatility, POSCO Holdings is 1.28 times less risky than Samyoung M. The stock trades about -0.04 of its potential returns per unit of risk. The Samyoung M Tek Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 382,000 in Samyoung M Tek Co on October 7, 2024 and sell it today you would earn a total of 74,500 from holding Samyoung M Tek Co or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Samyoung M Tek Co
Performance |
| Timeline |
| POSCO Holdings |
| Samyoung M Tek |
POSCO Holdings and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Samyoung M
The main advantage of trading using opposite POSCO Holdings and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Samyoung M 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 M will offset losses from the drop in Samyoung M's long position.| POSCO Holdings vs. Pureun Mutual Savings | POSCO Holdings vs. Incar Financial Service | POSCO Holdings vs. Industrial Bank | POSCO Holdings vs. Dgb Financial |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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