Correlation Between Samlip General and IL Science
Can any of the company-specific risk be diversified away by investing in both Samlip General and IL Science 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 IL Science 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 IL Science Co, you can compare the effects of market volatilities on Samlip General and IL Science 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 IL Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and IL Science.
Diversification Opportunities for Samlip General and IL Science
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samlip and 307180 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and IL Science Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IL Science 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 IL Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IL Science has no effect on the direction of Samlip General i.e., Samlip General and IL Science go up and down completely randomly.
Pair Corralation between Samlip General and IL Science
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.58 times more return on investment than IL Science. However, Samlip General Foods is 1.73 times less risky than IL Science. It trades about -0.1 of its potential returns per unit of risk. IL Science Co is currently generating about -0.23 per unit of risk. If you would invest 4,910,000 in Samlip General Foods on September 3, 2024 and sell it today you would lose (200,000) from holding Samlip General Foods or give up 4.07% 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. IL Science Co
Performance |
| Timeline |
| Samlip General Foods |
| IL Science |
Samlip General and IL Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and IL Science
The main advantage of trading using opposite Samlip General and IL Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, IL Science 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 IL Science will offset losses from the drop in IL Science's long position.| Samlip General vs. Pan Entertainment Co | Samlip General vs. Barunson Entertainment Arts | Samlip General vs. Finebesteel | Samlip General vs. Kaonmedia Co |
| IL Science vs. Pureun Mutual Savings | IL Science vs. Hwangkum Steel Technology | IL Science vs. Cots Technology Co | IL Science vs. Shinhan Financial Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |