Correlation Between Samwha Electronics and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and Myoung Shin 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 Samwha Electronics and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samwha Electronics Co and Myoung Shin Industrial, you can compare the effects of market volatilities on Samwha Electronics and Myoung Shin 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 Samwha Electronics with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Myoung Shin.
Diversification Opportunities for Samwha Electronics and Myoung Shin
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samwha and Myoung is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Samwha 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 Samwha Electronics Co are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and Myoung Shin go up and down completely randomly.
Pair Corralation between Samwha Electronics and Myoung Shin
Assuming the 90 days trading horizon Samwha Electronics Co is expected to generate 1.58 times more return on investment than Myoung Shin. However, Samwha Electronics is 1.58 times more volatile than Myoung Shin Industrial. It trades about 0.1 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.16 per unit of risk. If you would invest 290,000 in Samwha Electronics Co on September 1, 2024 and sell it today you would earn a total of 29,000 from holding Samwha Electronics Co or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samwha Electronics Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| Samwha Electronics |
| Myoung Shin Industrial |
Samwha Electronics and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Myoung Shin
The main advantage of trading using opposite Samwha Electronics and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Samwha Electronics vs. AptaBio Therapeutics | Samwha Electronics vs. Daewoo SBI SPAC | Samwha Electronics vs. Dream Security co | Samwha Electronics vs. Microfriend |
| Myoung Shin vs. KB Financial Group | Myoung Shin vs. Dongbang Ship Machinery | Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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