Correlation Between Samyoung Electronics and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and Daishin Balance 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 Daishin Balance 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 Daishin Balance 1, you can compare the effects of market volatilities on Samyoung Electronics and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Daishin Balance.
Diversification Opportunities for Samyoung Electronics and Daishin Balance
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyoung and Daishin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and Daishin Balance 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance 1 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance 1 has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and Daishin Balance go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Daishin Balance
Assuming the 90 days trading horizon Samyoung Electronics is expected to generate 10.36 times less return on investment than Daishin Balance. But when comparing it to its historical volatility, Samyoung Electronics Co is 6.68 times less risky than Daishin Balance. It trades about 0.12 of its potential returns per unit of risk. Daishin Balance 1 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 518,000 in Daishin Balance 1 on October 20, 2024 and sell it today you would earn a total of 69,000 from holding Daishin Balance 1 or generate 13.32% 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. Daishin Balance 1
Performance |
| Timeline |
| Samyoung Electronics |
| Daishin Balance 1 |
Samyoung Electronics and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Daishin Balance
The main advantage of trading using opposite Samyoung Electronics and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Samyoung Electronics vs. Daeduck Electronics Co | Samyoung Electronics vs. Hannong Chemicals | Samyoung Electronics vs. PJ Electronics Co | Samyoung Electronics vs. SK Chemicals Co |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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