Correlation Between Samwha Electronics and Hansol Chemica
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and Hansol Chemica 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 Hansol Chemica 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 Hansol Chemica, you can compare the effects of market volatilities on Samwha Electronics and Hansol Chemica 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 Hansol Chemica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Hansol Chemica.
Diversification Opportunities for Samwha Electronics and Hansol Chemica
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samwha and Hansol is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and Hansol Chemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemica 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 Hansol Chemica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemica has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and Hansol Chemica go up and down completely randomly.
Pair Corralation between Samwha Electronics and Hansol Chemica
Assuming the 90 days trading horizon Samwha Electronics Co is expected to generate 2.33 times more return on investment than Hansol Chemica. However, Samwha Electronics is 2.33 times more volatile than Hansol Chemica. It trades about 0.07 of its potential returns per unit of risk. Hansol Chemica is currently generating about -0.26 per unit of risk. If you would invest 294,000 in Samwha Electronics Co on August 29, 2024 and sell it today you would earn a total of 18,000 from holding Samwha Electronics Co or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samwha Electronics Co vs. Hansol Chemica
Performance |
| Timeline |
| Samwha Electronics |
| Hansol Chemica |
Samwha Electronics and Hansol Chemica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Hansol Chemica
The main advantage of trading using opposite Samwha Electronics and Hansol Chemica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, Hansol Chemica 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 Hansol Chemica will offset losses from the drop in Hansol Chemica's long position.| Samwha Electronics vs. AptaBio Therapeutics | Samwha Electronics vs. Daewoo SBI SPAC | Samwha Electronics vs. Dream Security co | Samwha Electronics vs. Microfriend |
| Hansol Chemica vs. Korea Investment Holdings | Hansol Chemica vs. Shinil Electronics Co | Hansol Chemica vs. Samwha Electronics Co | Hansol Chemica vs. Sangshin 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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