Correlation Between Samsung SDI and HYBE
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and HYBE 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 HYBE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and HYBE Co, you can compare the effects of market volatilities on Samsung SDI and HYBE 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 HYBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and HYBE.
Diversification Opportunities for Samsung SDI and HYBE
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and HYBE is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE 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 HYBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE has no effect on the direction of Samsung SDI i.e., Samsung SDI and HYBE go up and down completely randomly.
Pair Corralation between Samsung SDI and HYBE
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the HYBE. In addition to that, Samsung SDI is 1.55 times more volatile than HYBE Co. It trades about -0.29 of its total potential returns per unit of risk. HYBE Co is currently generating about 0.11 per unit of volatility. If you would invest 18,550,000 in HYBE Co on September 1, 2024 and sell it today you would earn a total of 970,000 from holding HYBE Co or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI vs. HYBE Co
Performance |
| Timeline |
| Samsung SDI |
| HYBE |
Samsung SDI and HYBE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and HYBE
The main advantage of trading using opposite Samsung SDI and HYBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, HYBE 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 HYBE will offset losses from the drop in HYBE's 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 |
| HYBE vs. Atinum Investment Co | HYBE vs. Dongbu Insurance Co | HYBE vs. Korean Reinsurance Co | HYBE vs. KakaoBank Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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