Correlation Between Pureun Mutual and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Samsung SDI 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 Pureun Mutual and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and Samsung SDI, you can compare the effects of market volatilities on Pureun Mutual and Samsung SDI 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 Pureun Mutual with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Samsung SDI.
Diversification Opportunities for Pureun Mutual and Samsung SDI
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pureun and Samsung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Samsung SDI go up and down completely randomly.
Pair Corralation between Pureun Mutual and Samsung SDI
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.37 times more return on investment than Samsung SDI. However, Pureun Mutual Savings is 2.68 times less risky than Samsung SDI. It trades about 0.08 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.06 per unit of risk. If you would invest 844,000 in Pureun Mutual Savings on September 13, 2024 and sell it today you would earn a total of 19,000 from holding Pureun Mutual Savings or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Samsung SDI
Performance |
| Timeline |
| Pureun Mutual Savings |
| Samsung SDI |
Pureun Mutual and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Samsung SDI
The main advantage of trading using opposite Pureun Mutual and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Samsung SDI 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 Samsung SDI will offset losses from the drop in Samsung SDI's long position.| Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group | Pureun Mutual vs. Hana Financial | Pureun Mutual vs. Woori Financial Group |
| Samsung SDI vs. Daewon Media Co | Samsung SDI vs. Korea Electronic Certification | Samsung SDI vs. Daeduck Electronics Co | Samsung SDI vs. Sunny Electronics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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