Correlation Between Samsung Electronics and Kyung-In Synthetic
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Kyung-In Synthetic 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 Kyung-In Synthetic 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Samsung Electronics and Kyung-In Synthetic 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 Kyung-In Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Kyung-In Synthetic.
Diversification Opportunities for Samsung Electronics and Kyung-In Synthetic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Kyung-In is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung-In Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Kyung-In Synthetic go up and down completely randomly.
Pair Corralation between Samsung Electronics and Kyung-In Synthetic
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.2 times more return on investment than Kyung-In Synthetic. However, Samsung Electronics is 1.2 times more volatile than Kyung In Synthetic Corp. It trades about -0.02 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.15 per unit of risk. If you would invest 5,500,000 in Samsung Electronics Co on September 12, 2024 and sell it today you would lose (100,000) from holding Samsung Electronics Co or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Samsung Electronics |
| Kyung In Synthetic |
Samsung Electronics and Kyung-In Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Kyung-In Synthetic
The main advantage of trading using opposite Samsung Electronics and Kyung-In Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Kyung-In Synthetic 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 Kyung-In Synthetic will offset losses from the drop in Kyung-In Synthetic's long position.| Samsung Electronics vs. Cube Entertainment | Samsung Electronics vs. Dreamus Company | Samsung Electronics vs. LG Energy Solution | Samsung Electronics vs. Dongwon System |
| Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. SK Hynix | Kyung-In Synthetic 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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