Correlation Between Samlip General and Air Busan
Can any of the company-specific risk be diversified away by investing in both Samlip General and Air Busan 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 Air Busan 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 Air Busan Co, you can compare the effects of market volatilities on Samlip General and Air Busan 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 Air Busan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Air Busan.
Diversification Opportunities for Samlip General and Air Busan
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samlip and Air is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Air Busan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Busan 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 Air Busan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Busan has no effect on the direction of Samlip General i.e., Samlip General and Air Busan go up and down completely randomly.
Pair Corralation between Samlip General and Air Busan
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.83 times more return on investment than Air Busan. However, Samlip General Foods is 1.2 times less risky than Air Busan. It trades about 0.02 of its potential returns per unit of risk. Air Busan Co is currently generating about -0.06 per unit of risk. If you would invest 4,989,006 in Samlip General Foods on September 29, 2024 and sell it today you would earn a total of 40,994 from holding Samlip General Foods or generate 0.82% 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. Air Busan Co
Performance |
| Timeline |
| Samlip General Foods |
| Air Busan |
Samlip General and Air Busan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Air Busan
The main advantage of trading using opposite Samlip General and Air Busan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Air Busan 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 Air Busan will offset losses from the drop in Air Busan's long position.| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Wonbang Tech Co | Samlip General vs. Busan Industrial Co | Samlip General vs. Busan Ind |
| Air Busan vs. Samlip General Foods | Air Busan vs. Husteel | Air Busan vs. INSUN Environmental New | Air Busan vs. Korea Steel 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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