Correlation Between Samlip General and Nable Communications
Can any of the company-specific risk be diversified away by investing in both Samlip General and Nable Communications 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 Nable Communications 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 Nable Communications, you can compare the effects of market volatilities on Samlip General and Nable Communications 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 Nable Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Nable Communications.
Diversification Opportunities for Samlip General and Nable Communications
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samlip and Nable is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Nable Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nable Communications 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 Nable Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nable Communications has no effect on the direction of Samlip General i.e., Samlip General and Nable Communications go up and down completely randomly.
Pair Corralation between Samlip General and Nable Communications
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 1.28 times more return on investment than Nable Communications. However, Samlip General is 1.28 times more volatile than Nable Communications. It trades about 0.01 of its potential returns per unit of risk. Nable Communications is currently generating about 0.0 per unit of risk. If you would invest 4,921,326 in Samlip General Foods on October 18, 2024 and sell it today you would lose (6,326) from holding Samlip General Foods or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Nable Communications
Performance |
| Timeline |
| Samlip General Foods |
| Nable Communications |
Samlip General and Nable Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Nable Communications
The main advantage of trading using opposite Samlip General and Nable Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Nable Communications 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 Nable Communications will offset losses from the drop in Nable Communications' long position.| Samlip General vs. Jeong Moon Information | Samlip General vs. Daishin Information Communications | Samlip General vs. Ssangyong Information Communication | Samlip General vs. Moadata Co |
| Nable Communications vs. Samlip General Foods | Nable Communications vs. Foodnamoo | Nable Communications vs. Solus Advanced Materials | Nable Communications vs. Samick Musical Instruments |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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