Correlation Between Samlip General and Ubiquoss Holdings
Can any of the company-specific risk be diversified away by investing in both Samlip General and Ubiquoss Holdings 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 Ubiquoss Holdings 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 Ubiquoss Holdings, you can compare the effects of market volatilities on Samlip General and Ubiquoss Holdings 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 Ubiquoss Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Ubiquoss Holdings.
Diversification Opportunities for Samlip General and Ubiquoss Holdings
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samlip and Ubiquoss is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Ubiquoss Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubiquoss Holdings 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 Ubiquoss Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubiquoss Holdings has no effect on the direction of Samlip General i.e., Samlip General and Ubiquoss Holdings go up and down completely randomly.
Pair Corralation between Samlip General and Ubiquoss Holdings
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 1.51 times more return on investment than Ubiquoss Holdings. However, Samlip General is 1.51 times more volatile than Ubiquoss Holdings. It trades about -0.04 of its potential returns per unit of risk. Ubiquoss Holdings is currently generating about -0.09 per unit of risk. If you would invest 5,714,152 in Samlip General Foods on October 22, 2024 and sell it today you would lose (854,152) from holding Samlip General Foods or give up 14.95% 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. Ubiquoss Holdings
Performance |
| Timeline |
| Samlip General Foods |
| Ubiquoss Holdings |
Samlip General and Ubiquoss Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Ubiquoss Holdings
The main advantage of trading using opposite Samlip General and Ubiquoss Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Ubiquoss Holdings 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 Ubiquoss Holdings will offset losses from the drop in Ubiquoss Holdings' long position.| Samlip General vs. Industrial Bank | Samlip General vs. BNK Financial Group | Samlip General vs. Haitai Confectionery Foods | Samlip General vs. KakaoBank Corp |
| Ubiquoss Holdings vs. MetaLabs Co | Ubiquoss Holdings vs. DONGKUK TED METAL | Ubiquoss Holdings vs. Union Materials Corp | Ubiquoss Holdings vs. INNOX Advanced Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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