Correlation Between Daeduck Electronics and Samhyun
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics and Samhyun 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 Samhyun 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 Samhyun, you can compare the effects of market volatilities on Daeduck Electronics and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and Samhyun.
Diversification Opportunities for Daeduck Electronics and Samhyun
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daeduck and Samhyun is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of Daeduck Electronics i.e., Daeduck Electronics and Samhyun go up and down completely randomly.
Pair Corralation between Daeduck Electronics and Samhyun
Assuming the 90 days trading horizon Daeduck Electronics is expected to generate 9.27 times less return on investment than Samhyun. But when comparing it to its historical volatility, Daeduck Electronics Co is 7.22 times less risky than Samhyun. It trades about 0.03 of its potential returns per unit of risk. Samhyun is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 866,666 in Samhyun on September 29, 2024 and sell it today you would earn a total of 34,334 from holding Samhyun or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. Samhyun
Performance |
| Timeline |
| Daeduck Electronics |
| Samhyun |
Daeduck Electronics and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and Samhyun
The main advantage of trading using opposite Daeduck Electronics and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.| Daeduck Electronics vs. AptaBio Therapeutics | Daeduck Electronics vs. Wonbang Tech Co | Daeduck Electronics vs. Busan Industrial Co | Daeduck Electronics vs. Busan Ind |
| Samhyun vs. Samsung Electronics Co | Samhyun vs. Samsung Electronics Co | Samhyun vs. LG Energy Solution | Samhyun vs. SK Hynix |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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