Correlation Between Samyoung Electronics and Neungyule Education
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Neungyule Education 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 Neungyule Education 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 Neungyule Education, you can compare the effects of market volatilities on Samyoung Electronics and Neungyule Education 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 Neungyule Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Neungyule Education.
Diversification Opportunities for Samyoung Electronics and Neungyule Education
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyoung and Neungyule is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Neungyule Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neungyule Education 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 Neungyule Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neungyule Education has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Neungyule Education go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Neungyule Education
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.45 times more return on investment than Neungyule Education. However, Samyoung Electronics Co is 2.21 times less risky than Neungyule Education. It trades about 0.03 of its potential returns per unit of risk. Neungyule Education is currently generating about 0.01 per unit of risk. If you would invest 831,286 in Samyoung Electronics Co on October 16, 2024 and sell it today you would earn a total of 141,714 from holding Samyoung Electronics Co or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Neungyule Education
Performance |
| Timeline |
| Samyoung Electronics |
| Neungyule Education |
Samyoung Electronics and Neungyule Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Neungyule Education
The main advantage of trading using opposite Samyoung Electronics and Neungyule Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Neungyule Education 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 Neungyule Education will offset losses from the drop in Neungyule Education's long position.| Samyoung Electronics vs. Sangsangin Investment Securities | Samyoung Electronics vs. PLAYWITH | Samyoung Electronics vs. Playgram Co | Samyoung Electronics vs. Sangsin Energy Display |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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