Correlation Between Samsung Electronics and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal Co, you can compare the effects of market volatilities on Samsung Electronics and Seoyon Topmetal 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 Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Seoyon Topmetal.
Diversification Opportunities for Samsung Electronics and Seoyon Topmetal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Seoyon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal 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 Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between Samsung Electronics and Seoyon Topmetal
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Seoyon Topmetal. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.22 times less risky than Seoyon Topmetal. The stock trades about -0.01 of its potential returns per unit of risk. The Seoyon Topmetal Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 408,728 in Seoyon Topmetal Co on October 29, 2024 and sell it today you would lose (50,228) from holding Seoyon Topmetal Co or give up 12.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Seoyon Topmetal Co
Performance |
| Timeline |
| Samsung Electronics |
| Seoyon Topmetal |
Samsung Electronics and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Seoyon Topmetal
The main advantage of trading using opposite Samsung Electronics and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| Samsung Electronics vs. DONGKUK STEEL MILL | Samsung Electronics vs. System and Application | Samsung Electronics vs. GS Retail Co | Samsung Electronics vs. SeAH Besteel Corp |
| Seoyon Topmetal vs. Samlip General Foods | Seoyon Topmetal vs. ISU Chemical Co | Seoyon Topmetal vs. Daejung Chemicals Metals | Seoyon Topmetal vs. Hankukpackage Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |