Correlation Between Samyoung Electronics and SBI Investment
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and SBI Investment 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 SBI Investment 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 SBI Investment KOREA, you can compare the effects of market volatilities on Samyoung Electronics and SBI Investment 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 SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and SBI Investment.
Diversification Opportunities for Samyoung Electronics and SBI Investment
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyoung and SBI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA 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 SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and SBI Investment go up and down completely randomly.
Pair Corralation between Samyoung Electronics and SBI Investment
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.49 times more return on investment than SBI Investment. However, Samyoung Electronics Co is 2.04 times less risky than SBI Investment. It trades about 0.02 of its potential returns per unit of risk. SBI Investment KOREA is currently generating about -0.03 per unit of risk. If you would invest 982,000 in Samyoung Electronics Co on September 1, 2024 and sell it today you would earn a total of 24,000 from holding Samyoung Electronics Co or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. SBI Investment KOREA
Performance |
| Timeline |
| Samyoung Electronics |
| SBI Investment KOREA |
Samyoung Electronics and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and SBI Investment
The main advantage of trading using opposite Samyoung Electronics and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung Electronics vs. Microfriend |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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