Correlation Between Samyoung Electronics and CHEMTRONICSCOLtd
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd, you can compare the effects of market volatilities on Samyoung Electronics and CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and CHEMTRONICSCOLtd.
Diversification Opportunities for Samyoung Electronics and CHEMTRONICSCOLtd
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samyoung and CHEMTRONICSCOLtd is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and CHEMTRONICSCOLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMTRONICSCOLtd has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and CHEMTRONICSCOLtd go up and down completely randomly.
Pair Corralation between Samyoung Electronics and CHEMTRONICSCOLtd
Assuming the 90 days trading horizon Samyoung Electronics is expected to generate 1.23 times less return on investment than CHEMTRONICSCOLtd. But when comparing it to its historical volatility, Samyoung Electronics Co is 2.16 times less risky than CHEMTRONICSCOLtd. It trades about 0.02 of its potential returns per unit of risk. CHEMTRONICSCOLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,563,657 in CHEMTRONICSCOLtd on September 4, 2024 and sell it today you would lose (69,657) from holding CHEMTRONICSCOLtd or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. CHEMTRONICSCOLtd
Performance |
| Timeline |
| Samyoung Electronics |
| CHEMTRONICSCOLtd |
Samyoung Electronics and CHEMTRONICSCOLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and CHEMTRONICSCOLtd
The main advantage of trading using opposite Samyoung Electronics and CHEMTRONICSCOLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, CHEMTRONICSCOLtd 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 CHEMTRONICSCOLtd will offset losses from the drop in CHEMTRONICSCOLtd'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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