Correlation Between Daeduck Electronics and Samsung Card
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics and Samsung Card 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 Daeduck Electronics and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daeduck Electronics Co and Samsung Card Co, you can compare the effects of market volatilities on Daeduck Electronics and Samsung Card 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 Daeduck Electronics with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and Samsung Card.
Diversification Opportunities for Daeduck Electronics and Samsung Card
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daeduck and Samsung is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and Daeduck Electronics 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 Daeduck Electronics Co are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of Daeduck Electronics i.e., Daeduck Electronics and Samsung Card go up and down completely randomly.
Pair Corralation between Daeduck Electronics and Samsung Card
Assuming the 90 days trading horizon Daeduck Electronics Co is expected to generate 0.66 times more return on investment than Samsung Card. However, Daeduck Electronics Co is 1.52 times less risky than Samsung Card. It trades about 0.29 of its potential returns per unit of risk. Samsung Card Co is currently generating about 0.12 per unit of risk. If you would invest 616,000 in Daeduck Electronics Co on August 25, 2024 and sell it today you would earn a total of 42,000 from holding Daeduck Electronics Co or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. Samsung Card Co
Performance |
| Timeline |
| Daeduck Electronics |
| Samsung Card |
Daeduck Electronics and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and Samsung Card
The main advantage of trading using opposite Daeduck Electronics and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics position performs unexpectedly, Samsung Card 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 Card will offset losses from the drop in Samsung Card's long position.| Daeduck Electronics vs. AptaBio Therapeutics | Daeduck Electronics vs. Daewoo SBI SPAC | Daeduck Electronics vs. Dream Security co | Daeduck Electronics vs. Microfriend |
| Samsung Card vs. Daeduck Electronics Co | Samsung Card vs. Samji Electronics Co | Samsung Card vs. Seoul Electronics Telecom | Samsung Card vs. GS Retail Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |