Correlation Between Samsung SDI and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and MEDIPOST 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 MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and MEDIPOST Co, you can compare the effects of market volatilities on Samsung SDI and MEDIPOST 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 MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and MEDIPOST.
Diversification Opportunities for Samsung SDI and MEDIPOST
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and MEDIPOST is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST 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 MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Samsung SDI i.e., Samsung SDI and MEDIPOST go up and down completely randomly.
Pair Corralation between Samsung SDI and MEDIPOST
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the MEDIPOST. But the stock apears to be less risky and, when comparing its historical volatility, Samsung SDI is 1.71 times less risky than MEDIPOST. The stock trades about -0.11 of its potential returns per unit of risk. The MEDIPOST Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,133,000 in MEDIPOST Co on November 2, 2024 and sell it today you would earn a total of 28,000 from holding MEDIPOST Co or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI vs. MEDIPOST Co
Performance |
| Timeline |
| Samsung SDI |
| MEDIPOST |
Samsung SDI and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and MEDIPOST
The main advantage of trading using opposite Samsung SDI and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Samsung SDI vs. Woori Technology Investment | Samsung SDI vs. Stic Investments | Samsung SDI vs. Lotte Data Communication | Samsung SDI vs. DSC Investment |
| MEDIPOST vs. Handok Clean Tech | MEDIPOST vs. Daejung Chemicals Metals | MEDIPOST vs. Kukil Metal Co | MEDIPOST vs. Tuksu Engineering ConstructionLtd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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