Correlation Between Samwha Electronics and Korea Refract
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and Korea Refract 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 Korea Refract 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 Korea Refract, you can compare the effects of market volatilities on Samwha Electronics and Korea Refract 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 Korea Refract. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Korea Refract.
Diversification Opportunities for Samwha Electronics and Korea Refract
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samwha and Korea is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and Korea Refract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Refract 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 Korea Refract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Refract has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and Korea Refract go up and down completely randomly.
Pair Corralation between Samwha Electronics and Korea Refract
Assuming the 90 days trading horizon Samwha Electronics Co is expected to generate 1.82 times more return on investment than Korea Refract. However, Samwha Electronics is 1.82 times more volatile than Korea Refract. It trades about -0.02 of its potential returns per unit of risk. Korea Refract is currently generating about -0.11 per unit of risk. If you would invest 375,500 in Samwha Electronics Co on September 3, 2024 and sell it today you would lose (56,500) from holding Samwha Electronics Co or give up 15.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samwha Electronics Co vs. Korea Refract
Performance |
| Timeline |
| Samwha Electronics |
| Korea Refract |
Samwha Electronics and Korea Refract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Korea Refract
The main advantage of trading using opposite Samwha Electronics and Korea Refract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, Korea Refract 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 Korea Refract will offset losses from the drop in Korea Refract's long position.| Samwha Electronics vs. AptaBio Therapeutics | Samwha Electronics vs. Daewoo SBI SPAC | Samwha Electronics vs. Dream Security co | Samwha Electronics vs. Microfriend |
| Korea Refract vs. Dongbang Transport Logistics | Korea Refract vs. Samwha Electronics Co | Korea Refract vs. Anam Electronics Co | Korea Refract vs. Sungdo Engineering Construction |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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