Correlation Between Samsung Electronics and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and KyungIn Electronics 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 Samsung Electronics and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and KyungIn Electronics Co, you can compare the effects of market volatilities on Samsung Electronics and KyungIn Electronics 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 Samsung Electronics with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and KyungIn Electronics.
Diversification Opportunities for Samsung Electronics and KyungIn Electronics
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and KyungIn is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics and Samsung 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 Samsung Electronics Co are associated (or correlated) with KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Samsung Electronics and KyungIn Electronics
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the KyungIn Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.77 times less risky than KyungIn Electronics. The stock trades about -0.04 of its potential returns per unit of risk. The KyungIn Electronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,095,406 in KyungIn Electronics Co on September 14, 2024 and sell it today you would earn a total of 104,594 from holding KyungIn Electronics Co or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| Samsung Electronics |
| KyungIn Electronics |
Samsung Electronics and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and KyungIn Electronics
The main advantage of trading using opposite Samsung Electronics and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, KyungIn Electronics 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Samsung Electronics vs. Anam Electronics Co | Samsung Electronics vs. Daejoo Electronic Materials | Samsung Electronics vs. CG Hi Tech | Samsung Electronics vs. Samsung Electronics Co |
| KyungIn Electronics vs. Samsung Electronics Co | KyungIn Electronics vs. Samsung Electronics Co | KyungIn Electronics vs. SK Hynix | KyungIn Electronics vs. POSCO Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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