Correlation Between Samlip General and RFTech
Can any of the company-specific risk be diversified away by investing in both Samlip General and RFTech 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 RFTech 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 RFTech Co, you can compare the effects of market volatilities on Samlip General and RFTech 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 RFTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and RFTech.
Diversification Opportunities for Samlip General and RFTech
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samlip and RFTech is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and RFTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFTech 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 RFTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFTech has no effect on the direction of Samlip General i.e., Samlip General and RFTech go up and down completely randomly.
Pair Corralation between Samlip General and RFTech
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the RFTech. In addition to that, Samlip General is 1.13 times more volatile than RFTech Co. It trades about -0.57 of its total potential returns per unit of risk. RFTech Co is currently generating about 0.0 per unit of volatility. If you would invest 383,500 in RFTech Co on November 7, 2024 and sell it today you would lose (1,000.00) from holding RFTech Co or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. RFTech Co
Performance |
| Timeline |
| Samlip General Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| RFTech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Samlip General and RFTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and RFTech
The main advantage of trading using opposite Samlip General and RFTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, RFTech 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 RFTech will offset losses from the drop in RFTech's long position.| Samlip General vs. Asia Technology Co | Samlip General vs. Bosung Power Technology | Samlip General vs. Korea Plasma Technology | Samlip General vs. People Technology |
| RFTech vs. UJU Electronics Co | RFTech vs. Samsung Publishing Co | RFTech vs. Woori Technology | RFTech vs. Seoul Electronics Telecom |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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