Correlation Between Samsung SDI and Wysiwyg Studios
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and Wysiwyg Studios 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 Wysiwyg Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and Wysiwyg Studios Co, you can compare the effects of market volatilities on Samsung SDI and Wysiwyg Studios 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 Wysiwyg Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and Wysiwyg Studios.
Diversification Opportunities for Samsung SDI and Wysiwyg Studios
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Wysiwyg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and Wysiwyg Studios Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wysiwyg Studios 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 Wysiwyg Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wysiwyg Studios has no effect on the direction of Samsung SDI i.e., Samsung SDI and Wysiwyg Studios go up and down completely randomly.
Pair Corralation between Samsung SDI and Wysiwyg Studios
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the Wysiwyg Studios. But the stock apears to be less risky and, when comparing its historical volatility, Samsung SDI is 1.7 times less risky than Wysiwyg Studios. The stock trades about -0.29 of its potential returns per unit of risk. The Wysiwyg Studios Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 122,500 in Wysiwyg Studios Co on September 1, 2024 and sell it today you would earn a total of 53,400 from holding Wysiwyg Studios Co or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI vs. Wysiwyg Studios Co
Performance |
| Timeline |
| Samsung SDI |
| Wysiwyg Studios |
Samsung SDI and Wysiwyg Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and Wysiwyg Studios
The main advantage of trading using opposite Samsung SDI and Wysiwyg Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, Wysiwyg Studios 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 Wysiwyg Studios will offset losses from the drop in Wysiwyg Studios' long position.| Samsung SDI vs. Dongsin Engineering Construction | Samsung SDI vs. Doosan Fuel Cell | Samsung SDI vs. Daishin Balance 1 | Samsung SDI vs. Total Soft Bank |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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