Correlation Between Samsung SDI and NH SPAC
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and NH SPAC 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 NH SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and NH SPAC 8, you can compare the effects of market volatilities on Samsung SDI and NH SPAC 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 NH SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and NH SPAC.
Diversification Opportunities for Samsung SDI and NH SPAC
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and 218410 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and NH SPAC 8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH SPAC 8 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 NH SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH SPAC 8 has no effect on the direction of Samsung SDI i.e., Samsung SDI and NH SPAC go up and down completely randomly.
Pair Corralation between Samsung SDI and NH SPAC
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the NH SPAC. But the stock apears to be less risky and, when comparing its historical volatility, Samsung SDI is 1.21 times less risky than NH SPAC. The stock trades about -0.03 of its potential returns per unit of risk. The NH SPAC 8 is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,284,415 in NH SPAC 8 on November 27, 2024 and sell it today you would earn a total of 459,585 from holding NH SPAC 8 or generate 35.78% 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. NH SPAC 8
Performance |
| Timeline |
| Samsung SDI |
| NH SPAC 8 |
Samsung SDI and NH SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and NH SPAC
The main advantage of trading using opposite Samsung SDI and NH SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, NH SPAC 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 NH SPAC will offset losses from the drop in NH SPAC'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 |
| NH SPAC vs. Samsung Electronics Co | NH SPAC vs. Samsung Electronics Co | NH SPAC vs. LG Energy Solution | NH SPAC vs. SK Hynix |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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