Correlation Between Samlip General and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Samlip General and Kukdong Oil 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 Samlip General and Kukdong Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Kukdong Oil Chemicals, you can compare the effects of market volatilities on Samlip General and Kukdong Oil 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 Samlip General with a short position of Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Kukdong Oil.
Diversification Opportunities for Samlip General and Kukdong Oil
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samlip and Kukdong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals and Samlip General 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 Samlip General Foods are associated (or correlated) with Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Samlip General i.e., Samlip General and Kukdong Oil go up and down completely randomly.
Pair Corralation between Samlip General and Kukdong Oil
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 1.39 times more return on investment than Kukdong Oil. However, Samlip General is 1.39 times more volatile than Kukdong Oil Chemicals. It trades about 0.02 of its potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about -0.03 per unit of risk. If you would invest 4,853,645 in Samlip General Foods on October 22, 2024 and sell it today you would earn a total of 56,355 from holding Samlip General Foods or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| Samlip General Foods |
| Kukdong Oil Chemicals |
Samlip General and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Kukdong Oil
The main advantage of trading using opposite Samlip General and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Samlip General vs. Industrial Bank | Samlip General vs. BNK Financial Group | Samlip General vs. Haitai Confectionery Foods | Samlip General vs. KakaoBank Corp |
| Kukdong Oil vs. Samlip General Foods | Kukdong Oil vs. iNtRON Biotechnology | Kukdong Oil vs. Cheryong Industrial CoLtd | Kukdong Oil vs. Namhwa Industrial Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |