Correlation Between Samyoung Electronics and Lotte Fine
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Lotte Fine 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 Samyoung Electronics and Lotte Fine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyoung Electronics Co and Lotte Fine Chemical, you can compare the effects of market volatilities on Samyoung Electronics and Lotte Fine 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 Samyoung Electronics with a short position of Lotte Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Lotte Fine.
Diversification Opportunities for Samyoung Electronics and Lotte Fine
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samyoung and Lotte is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Lotte Fine Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Fine Chemical and Samyoung Electronics 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 Samyoung Electronics Co are associated (or correlated) with Lotte Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Fine Chemical has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Lotte Fine go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Lotte Fine
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.59 times more return on investment than Lotte Fine. However, Samyoung Electronics Co is 1.7 times less risky than Lotte Fine. It trades about 0.18 of its potential returns per unit of risk. Lotte Fine Chemical is currently generating about -0.39 per unit of risk. If you would invest 968,000 in Samyoung Electronics Co on August 25, 2024 and sell it today you would earn a total of 52,000 from holding Samyoung Electronics Co or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Lotte Fine Chemical
Performance |
| Timeline |
| Samyoung Electronics |
| Lotte Fine Chemical |
Samyoung Electronics and Lotte Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Lotte Fine
The main advantage of trading using opposite Samyoung Electronics and Lotte Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Lotte Fine 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 Lotte Fine will offset losses from the drop in Lotte Fine's long position.| Samyoung Electronics vs. Kukdo Chemical Co | Samyoung Electronics vs. Ni Steel | Samyoung Electronics vs. Hanil Iron Steel | Samyoung Electronics vs. Husteel |
| Lotte Fine vs. Infinitt Healthcare Co | Lotte Fine vs. Sungmoon Electronics Co | Lotte Fine vs. Samyoung Electronics Co | Lotte Fine vs. LG Electronics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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