Correlation Between Samsung SDI and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and Yura Tech 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 Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and Yura Tech Co, you can compare the effects of market volatilities on Samsung SDI and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and Yura Tech.
Diversification Opportunities for Samsung SDI and Yura Tech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Yura is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Samsung SDI i.e., Samsung SDI and Yura Tech go up and down completely randomly.
Pair Corralation between Samsung SDI and Yura Tech
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the Yura Tech. But the stock apears to be less risky and, when comparing its historical volatility, Samsung SDI is 1.14 times less risky than Yura Tech. The stock trades about -0.08 of its potential returns per unit of risk. The Yura Tech Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 748,507 in Yura Tech Co on November 1, 2024 and sell it today you would earn a total of 81,493 from holding Yura Tech Co or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI vs. Yura Tech Co
Performance |
| Timeline |
| Samsung SDI |
| Yura Tech |
Samsung SDI and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and Yura Tech
The main advantage of trading using opposite Samsung SDI and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Samsung SDI vs. PLAYWITH | Samsung SDI vs. Samsung Electronics Co | Samsung SDI vs. Daiyang Metal Co | Samsung SDI vs. Grand Korea Leisure |
| Yura Tech vs. Hwangkum Steel Technology | Yura Tech vs. Cots Technology Co | Yura Tech vs. Aprogen Healthcare Games | Yura Tech vs. Lotte Chilsung Beverage |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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