Correlation Between Samyoung Electronics and HMM
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and HMM 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 HMM 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 HMM Co, you can compare the effects of market volatilities on Samyoung Electronics and HMM 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 HMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and HMM.
Diversification Opportunities for Samyoung Electronics and HMM
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samyoung and HMM is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and HMM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMM Co 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 HMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMM Co has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and HMM go up and down completely randomly.
Pair Corralation between Samyoung Electronics and HMM
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.56 times more return on investment than HMM. However, Samyoung Electronics Co is 1.78 times less risky than HMM. It trades about 0.02 of its potential returns per unit of risk. HMM Co is currently generating about 0.01 per unit of risk. If you would invest 886,356 in Samyoung Electronics Co on September 4, 2024 and sell it today you would earn a total of 121,644 from holding Samyoung Electronics Co or generate 13.72% 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. HMM Co
Performance |
| Timeline |
| Samyoung Electronics |
| HMM Co |
Samyoung Electronics and HMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and HMM
The main advantage of trading using opposite Samyoung Electronics and HMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, HMM 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 HMM will offset losses from the drop in HMM's long position.| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |