Correlation Between Samwha Electronics and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and Mirai Semiconductors 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 Mirai Semiconductors 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 Mirai Semiconductors Co, you can compare the effects of market volatilities on Samwha Electronics and Mirai Semiconductors 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 Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Mirai Semiconductors.
Diversification Opportunities for Samwha Electronics and Mirai Semiconductors
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samwha and Mirai is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors 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 Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Samwha Electronics and Mirai Semiconductors
Assuming the 90 days trading horizon Samwha Electronics is expected to generate 1.64 times less return on investment than Mirai Semiconductors. But when comparing it to its historical volatility, Samwha Electronics Co is 1.23 times less risky than Mirai Semiconductors. It trades about 0.23 of its potential returns per unit of risk. Mirai Semiconductors Co is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,040,000 in Mirai Semiconductors Co on October 11, 2024 and sell it today you would earn a total of 192,000 from holding Mirai Semiconductors Co or generate 18.46% 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. Mirai Semiconductors Co
Performance |
| Timeline |
| Samwha Electronics |
| Mirai Semiconductors |
Samwha Electronics and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Mirai Semiconductors
The main advantage of trading using opposite Samwha Electronics and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.| Samwha Electronics vs. Seah Steel Corp | Samwha Electronics vs. Hironic Co | Samwha Electronics vs. J Steel Co | Samwha Electronics vs. Coloray International Investment |
| Mirai Semiconductors vs. Samwha Electronics Co | Mirai Semiconductors vs. Tway Air Co | Mirai Semiconductors vs. Infinitt Healthcare Co | Mirai Semiconductors vs. Jeju Air 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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