Correlation Between Samlip General and Kiwoom
Can any of the company-specific risk be diversified away by investing in both Samlip General and Kiwoom 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 Kiwoom 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 Kiwoom, you can compare the effects of market volatilities on Samlip General and Kiwoom 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 Kiwoom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Kiwoom.
Diversification Opportunities for Samlip General and Kiwoom
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samlip and Kiwoom is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Kiwoom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiwoom 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 Kiwoom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiwoom has no effect on the direction of Samlip General i.e., Samlip General and Kiwoom go up and down completely randomly.
Pair Corralation between Samlip General and Kiwoom
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the Kiwoom. But the stock apears to be less risky and, when comparing its historical volatility, Samlip General Foods is 1.74 times less risky than Kiwoom. The stock trades about -0.06 of its potential returns per unit of risk. The Kiwoom is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,576,832 in Kiwoom on September 14, 2024 and sell it today you would earn a total of 2,473,168 from holding Kiwoom or generate 25.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Samlip General Foods vs. Kiwoom
Performance |
| Timeline |
| Samlip General Foods |
| Kiwoom |
Samlip General and Kiwoom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Kiwoom
The main advantage of trading using opposite Samlip General and Kiwoom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Kiwoom 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 Kiwoom will offset losses from the drop in Kiwoom's long position.| Samlip General vs. KakaoBank Corp | Samlip General vs. Atinum Investment Co | Samlip General vs. Lotte Non Life Insurance | Samlip General vs. Incar Financial Service |
| Kiwoom vs. KB Financial Group | Kiwoom vs. Shinhan Financial Group | Kiwoom vs. Hana Financial | Kiwoom vs. Woori Financial Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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