Correlation Between Ssangyong Information and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Samsung Fire 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 Ssangyong Information and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and Samsung Fire Marine, you can compare the effects of market volatilities on Ssangyong Information and Samsung Fire 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 Ssangyong Information with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Samsung Fire.
Diversification Opportunities for Ssangyong Information and Samsung Fire
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssangyong and Samsung is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Ssangyong Information 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 Ssangyong Information Communication are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Samsung Fire go up and down completely randomly.
Pair Corralation between Ssangyong Information and Samsung Fire
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Samsung Fire. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 3.65 times less risky than Samsung Fire. The stock trades about -0.13 of its potential returns per unit of risk. The Samsung Fire Marine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 36,500,000 in Samsung Fire Marine on November 7, 2024 and sell it today you would earn a total of 500,000 from holding Samsung Fire Marine or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Samsung Fire Marine
Performance |
| Timeline |
| Ssangyong Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Samsung Fire Marine |
Ssangyong Information and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Samsung Fire
The main advantage of trading using opposite Ssangyong Information and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Samsung Fire 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 Fire will offset losses from the drop in Samsung Fire's long position.| Ssangyong Information vs. Bosung Power Technology | Ssangyong Information vs. Neungyule Education | Ssangyong Information vs. Samsung Publishing Co | Ssangyong Information vs. Seoul Semiconductor Co |
| Samsung Fire vs. Shinhan Financial Group | Samsung Fire vs. Hana Financial | Samsung Fire vs. Samsung Electronics Co | Samsung Fire vs. Samsung Electronics 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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