Correlation Between Samyoung Electronics and Daejung Chemicals
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Daejung Chemicals 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 Daejung Chemicals 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 Daejung Chemicals Metals, you can compare the effects of market volatilities on Samyoung Electronics and Daejung Chemicals 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 Daejung Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Daejung Chemicals.
Diversification Opportunities for Samyoung Electronics and Daejung Chemicals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samyoung and Daejung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Daejung Chemicals Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejung Chemicals Metals 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 Daejung Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejung Chemicals Metals has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Daejung Chemicals go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Daejung Chemicals
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 1.13 times more return on investment than Daejung Chemicals. However, Samyoung Electronics is 1.13 times more volatile than Daejung Chemicals Metals. It trades about 0.28 of its potential returns per unit of risk. Daejung Chemicals Metals is currently generating about 0.15 per unit of risk. If you would invest 985,000 in Samyoung Electronics Co on October 28, 2024 and sell it today you would earn a total of 56,000 from holding Samyoung Electronics Co or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Daejung Chemicals Metals
Performance |
| Timeline |
| Samyoung Electronics |
| Daejung Chemicals Metals |
Samyoung Electronics and Daejung Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Daejung Chemicals
The main advantage of trading using opposite Samyoung Electronics and Daejung Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Daejung Chemicals 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 Daejung Chemicals will offset losses from the drop in Daejung Chemicals' long position.| Samyoung Electronics vs. Lion Chemtech Co | Samyoung Electronics vs. Jeong Moon Information | Samyoung Electronics vs. NICE Information Service | Samyoung Electronics vs. Eagle Veterinary Technology |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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