Correlation Between Samsung SDI and Tae Kwang
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and Tae Kwang 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 SDI and Tae Kwang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and Tae Kwang, you can compare the effects of market volatilities on Samsung SDI and Tae Kwang 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 SDI with a short position of Tae Kwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and Tae Kwang.
Diversification Opportunities for Samsung SDI and Tae Kwang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Tae is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and Tae Kwang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kwang and Samsung SDI 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 SDI are associated (or correlated) with Tae Kwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kwang has no effect on the direction of Samsung SDI i.e., Samsung SDI and Tae Kwang go up and down completely randomly.
Pair Corralation between Samsung SDI and Tae Kwang
If you would invest 22,200,000 in Samsung SDI on November 27, 2024 and sell it today you would earn a total of 2,500,000 from holding Samsung SDI or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung SDI vs. Tae Kwang
Performance |
| Timeline |
| Samsung SDI |
| Tae Kwang |
Risk-Adjusted Performance
Good
Weak | Strong |
Samsung SDI and Tae Kwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and Tae Kwang
The main advantage of trading using opposite Samsung SDI and Tae Kwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, Tae Kwang 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 Tae Kwang will offset losses from the drop in Tae Kwang's long position.| Samsung SDI vs. Sam Yang Foods | Samsung SDI vs. Tway Air Co | Samsung SDI vs. Jeju Bank | Samsung SDI vs. Jin Air Co |
| Tae Kwang vs. Sung Kwang Bend | Tae Kwang vs. Taewoong CoLtd | Tae Kwang vs. SFA Engineering | Tae Kwang vs. Soulbrain Holdings 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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