Correlation Between PJ Electronics and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both PJ Electronics and Samsung Biologics 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 PJ Electronics and Samsung Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJ Electronics Co and Samsung Biologics Co, you can compare the effects of market volatilities on PJ Electronics and Samsung Biologics 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 PJ Electronics with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Electronics and Samsung Biologics.
Diversification Opportunities for PJ Electronics and Samsung Biologics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 006140 and Samsung is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PJ Electronics Co and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics and PJ 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 PJ Electronics Co are associated (or correlated) with Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of PJ Electronics i.e., PJ Electronics and Samsung Biologics go up and down completely randomly.
Pair Corralation between PJ Electronics and Samsung Biologics
Assuming the 90 days trading horizon PJ Electronics Co is expected to under-perform the Samsung Biologics. In addition to that, PJ Electronics is 1.6 times more volatile than Samsung Biologics Co. It trades about -0.04 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about 0.01 per unit of volatility. If you would invest 100,000,000 in Samsung Biologics Co on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Biologics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJ Electronics Co vs. Samsung Biologics Co
Performance |
| Timeline |
| PJ Electronics |
| Samsung Biologics |
PJ Electronics and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Electronics and Samsung Biologics
The main advantage of trading using opposite PJ Electronics and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Electronics position performs unexpectedly, Samsung Biologics 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 Samsung Biologics will offset losses from the drop in Samsung Biologics' long position.| PJ Electronics vs. Seers Technology | PJ Electronics vs. Global Standard Technology | PJ Electronics vs. Seoul Semiconductor Co | PJ Electronics vs. Eugene Technology CoLtd |
| Samsung Biologics vs. Inzi Display CoLtd | Samsung Biologics vs. Sungmoon Electronics Co | Samsung Biologics vs. PJ Electronics Co | Samsung Biologics vs. Iljin Display |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |