Correlation Between Samsung Electronics and Wonil Special
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on Samsung Electronics and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Wonil Special.
Diversification Opportunities for Samsung Electronics and Wonil Special
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and Wonil is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Wonil Special go up and down completely randomly.
Pair Corralation between Samsung Electronics and Wonil Special
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Wonil Special. In addition to that, Samsung Electronics is 2.57 times more volatile than Wonil Special Steel. It trades about -0.03 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about 0.44 per unit of volatility. If you would invest 690,630 in Wonil Special Steel on October 15, 2024 and sell it today you would earn a total of 42,370 from holding Wonil Special Steel or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Wonil Special Steel
Performance |
| Timeline |
| Samsung Electronics |
| Wonil Special Steel |
Samsung Electronics and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Wonil Special
The main advantage of trading using opposite Samsung Electronics and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| Samsung Electronics vs. Hana Technology Co | Samsung Electronics vs. Kbi Metal Co | Samsung Electronics vs. iNtRON Biotechnology | Samsung Electronics vs. DONGKUK TED METAL |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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