Correlation Between Samyoung Electronics and Daeduck Electronics
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Daeduck Electronics 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 Daeduck Electronics 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 Daeduck Electronics Co, you can compare the effects of market volatilities on Samyoung Electronics and Daeduck Electronics 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 Daeduck Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Daeduck Electronics.
Diversification Opportunities for Samyoung Electronics and Daeduck Electronics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyoung and Daeduck is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Daeduck Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daeduck Electronics 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 Daeduck Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daeduck Electronics has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Daeduck Electronics go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Daeduck Electronics
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 2.31 times more return on investment than Daeduck Electronics. However, Samyoung Electronics is 2.31 times more volatile than Daeduck Electronics Co. It trades about 0.3 of its potential returns per unit of risk. Daeduck Electronics Co is currently generating about 0.04 per unit of risk. If you would invest 987,000 in Samyoung Electronics Co on November 9, 2024 and sell it today you would earn a total of 55,000 from holding Samyoung Electronics Co or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Daeduck Electronics Co
Performance |
| Timeline |
| Samyoung Electronics |
| Daeduck Electronics |
Samyoung Electronics and Daeduck Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Daeduck Electronics
The main advantage of trading using opposite Samyoung Electronics and Daeduck Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Daeduck Electronics 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 Daeduck Electronics will offset losses from the drop in Daeduck Electronics' long position.| Samyoung Electronics vs. YeaRimDang Publishing Co | Samyoung Electronics vs. Digital Multimedia Technology | Samyoung Electronics vs. Alton Sports CoLtd | Samyoung Electronics vs. Clean Science co |
| Daeduck Electronics vs. AptaBio Therapeutics | Daeduck Electronics vs. Daewoo SBI SPAC | Daeduck Electronics vs. Dream Security co | Daeduck Electronics vs. Microfriend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |