Correlation Between Samhyun Steel and SBI Investment
Can any of the company-specific risk be diversified away by investing in both Samhyun Steel and SBI Investment 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 Samhyun Steel and SBI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhyun Steel Co and SBI Investment KOREA, you can compare the effects of market volatilities on Samhyun Steel and SBI Investment 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 Samhyun Steel with a short position of SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhyun Steel and SBI Investment.
Diversification Opportunities for Samhyun Steel and SBI Investment
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samhyun and SBI is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Samhyun Steel Co and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA and Samhyun Steel 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 Samhyun Steel Co are associated (or correlated) with SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of Samhyun Steel i.e., Samhyun Steel and SBI Investment go up and down completely randomly.
Pair Corralation between Samhyun Steel and SBI Investment
Assuming the 90 days trading horizon Samhyun Steel Co is expected to generate 0.46 times more return on investment than SBI Investment. However, Samhyun Steel Co is 2.16 times less risky than SBI Investment. It trades about -0.02 of its potential returns per unit of risk. SBI Investment KOREA is currently generating about -0.01 per unit of risk. If you would invest 498,113 in Samhyun Steel Co on September 12, 2024 and sell it today you would lose (48,613) from holding Samhyun Steel Co or give up 9.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhyun Steel Co vs. SBI Investment KOREA
Performance |
| Timeline |
| Samhyun Steel |
| SBI Investment KOREA |
Samhyun Steel and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhyun Steel and SBI Investment
The main advantage of trading using opposite Samhyun Steel and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhyun Steel position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| Samhyun Steel vs. Keum Kang Steel | Samhyun Steel vs. PJ Metal Co | Samhyun Steel vs. Gyeongnam Steel Co | Samhyun Steel vs. Jeil Steel Mfg |
| SBI Investment vs. KB Financial Group | SBI Investment vs. Shinhan Financial Group | SBI Investment vs. Hana Financial | SBI Investment vs. Woori Financial Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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