Correlation Between Samlip General and Bookook Steel
Can any of the company-specific risk be diversified away by investing in both Samlip General and Bookook Steel 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 Bookook Steel 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 Bookook Steel, you can compare the effects of market volatilities on Samlip General and Bookook Steel 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 Bookook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Bookook Steel.
Diversification Opportunities for Samlip General and Bookook Steel
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samlip and Bookook is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Bookook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bookook Steel 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 Bookook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bookook Steel has no effect on the direction of Samlip General i.e., Samlip General and Bookook Steel go up and down completely randomly.
Pair Corralation between Samlip General and Bookook Steel
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the Bookook Steel. But the stock apears to be less risky and, when comparing its historical volatility, Samlip General Foods is 2.17 times less risky than Bookook Steel. The stock trades about -0.05 of its potential returns per unit of risk. The Bookook Steel is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 340,221 in Bookook Steel on September 3, 2024 and sell it today you would lose (102,221) from holding Bookook Steel or give up 30.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Bookook Steel
Performance |
| Timeline |
| Samlip General Foods |
| Bookook Steel |
Samlip General and Bookook Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Bookook Steel
The main advantage of trading using opposite Samlip General and Bookook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Bookook Steel 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 Bookook Steel will offset losses from the drop in Bookook Steel's long position.| Samlip General vs. Pan Entertainment Co | Samlip General vs. Barunson Entertainment Arts | Samlip General vs. Finebesteel | Samlip General vs. Kaonmedia Co |
| Bookook Steel vs. Seah Steel Corp | Bookook Steel vs. Ni Steel | Bookook Steel vs. Korea Steel Co | Bookook Steel vs. Finebesteel |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |