Correlation Between Samyoung Electronics and Dongbu Steel
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Dongbu Steel 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 Dongbu Steel 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 Dongbu Steel Co, you can compare the effects of market volatilities on Samyoung Electronics and Dongbu Steel 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 Dongbu Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Dongbu Steel.
Diversification Opportunities for Samyoung Electronics and Dongbu Steel
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyoung and Dongbu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Dongbu Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Steel 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 Dongbu Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Steel has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Dongbu Steel go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Dongbu Steel
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.55 times more return on investment than Dongbu Steel. However, Samyoung Electronics Co is 1.81 times less risky than Dongbu Steel. It trades about 0.03 of its potential returns per unit of risk. Dongbu Steel Co is currently generating about 0.0 per unit of risk. If you would invest 886,356 in Samyoung Electronics Co on August 31, 2024 and sell it today you would earn a total of 128,644 from holding Samyoung Electronics Co or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Dongbu Steel Co
Performance |
| Timeline |
| Samyoung Electronics |
| Dongbu Steel |
Samyoung Electronics and Dongbu Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Dongbu Steel
The main advantage of trading using opposite Samyoung Electronics and Dongbu Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Dongbu Steel 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 Dongbu Steel will offset losses from the drop in Dongbu Steel's long position.| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung Electronics vs. Microfriend |
| Dongbu Steel vs. Samyoung Electronics Co | Dongbu Steel vs. Anam Electronics Co | Dongbu Steel vs. Jb Financial | Dongbu Steel vs. Daejoo Electronic Materials |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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