Correlation Between Samhyun Steel and Daishin Information
Can any of the company-specific risk be diversified away by investing in both Samhyun Steel and Daishin Information 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 Daishin Information 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 Daishin Information Communications, you can compare the effects of market volatilities on Samhyun Steel and Daishin Information 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 Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhyun Steel and Daishin Information.
Diversification Opportunities for Samhyun Steel and Daishin Information
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samhyun and Daishin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Samhyun Steel Co and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information 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 Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of Samhyun Steel i.e., Samhyun Steel and Daishin Information go up and down completely randomly.
Pair Corralation between Samhyun Steel and Daishin Information
Assuming the 90 days trading horizon Samhyun Steel is expected to generate 16.32 times less return on investment than Daishin Information. But when comparing it to its historical volatility, Samhyun Steel Co is 2.19 times less risky than Daishin Information. It trades about 0.04 of its potential returns per unit of risk. Daishin Information Communications is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 85,100 in Daishin Information Communications on September 12, 2024 and sell it today you would earn a total of 19,100 from holding Daishin Information Communications or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhyun Steel Co vs. Daishin Information Communicat
Performance |
| Timeline |
| Samhyun Steel |
| Daishin Information |
Samhyun Steel and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhyun Steel and Daishin Information
The main advantage of trading using opposite Samhyun Steel and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhyun Steel position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information'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 |
| Daishin Information vs. Hanil Iron Steel | Daishin Information vs. Hankook Steel Co | Daishin Information vs. Samhyun Steel Co | Daishin Information vs. Han Kook Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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