Correlation Between GS Retail and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both GS Retail and Samyung Trading 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 GS Retail and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Samyung Trading Co, you can compare the effects of market volatilities on GS Retail and Samyung Trading 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 GS Retail with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Samyung Trading.
Diversification Opportunities for GS Retail and Samyung Trading
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 007070 and Samyung is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and GS Retail 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 GS Retail Co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of GS Retail i.e., GS Retail and Samyung Trading go up and down completely randomly.
Pair Corralation between GS Retail and Samyung Trading
Assuming the 90 days trading horizon GS Retail Co is expected to generate 2.85 times more return on investment than Samyung Trading. However, GS Retail is 2.85 times more volatile than Samyung Trading Co. It trades about 0.02 of its potential returns per unit of risk. Samyung Trading Co is currently generating about -0.05 per unit of risk. If you would invest 2,275,000 in GS Retail Co on September 1, 2024 and sell it today you would earn a total of 40,000 from holding GS Retail Co or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
GS Retail Co vs. Samyung Trading Co
Performance |
| Timeline |
| GS Retail |
| Samyung Trading |
GS Retail and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Samyung Trading
The main advantage of trading using opposite GS Retail and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
| Samyung Trading vs. Dongwon Metal Co | Samyung Trading vs. Shinhan Inverse Copper | Samyung Trading vs. Alton Sports CoLtd | Samyung Trading vs. Daejung Chemicals Metals |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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