Correlation Between Samlip General and InnoTherapy
Can any of the company-specific risk be diversified away by investing in both Samlip General and InnoTherapy 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 InnoTherapy 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 InnoTherapy, you can compare the effects of market volatilities on Samlip General and InnoTherapy 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 InnoTherapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and InnoTherapy.
Diversification Opportunities for Samlip General and InnoTherapy
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samlip and InnoTherapy is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and InnoTherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InnoTherapy 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 InnoTherapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InnoTherapy has no effect on the direction of Samlip General i.e., Samlip General and InnoTherapy go up and down completely randomly.
Pair Corralation between Samlip General and InnoTherapy
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the InnoTherapy. In addition to that, Samlip General is 1.0 times more volatile than InnoTherapy. It trades about -0.02 of its total potential returns per unit of risk. InnoTherapy is currently generating about 0.07 per unit of volatility. If you would invest 890,000 in InnoTherapy on November 1, 2024 and sell it today you would earn a total of 83,000 from holding InnoTherapy or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. InnoTherapy
Performance |
| Timeline |
| Samlip General Foods |
| InnoTherapy |
Samlip General and InnoTherapy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and InnoTherapy
The main advantage of trading using opposite Samlip General and InnoTherapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, InnoTherapy 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 InnoTherapy will offset losses from the drop in InnoTherapy's long position.| Samlip General vs. Sangsangin Investment Securities | Samlip General vs. Pureun Mutual Savings | Samlip General vs. Atinum Investment Co | Samlip General vs. Nh Investment And |
| InnoTherapy vs. LG Household Healthcare | InnoTherapy vs. Neungyule Education | InnoTherapy vs. TS Investment Corp | InnoTherapy vs. Atinum Investment Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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