Correlation Between Samhyun Steel and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Samhyun Steel and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Samhyun Steel and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhyun Steel and BIT Computer.
Diversification Opportunities for Samhyun Steel and BIT Computer
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samhyun and BIT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samhyun Steel Co and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Samhyun Steel i.e., Samhyun Steel and BIT Computer go up and down completely randomly.
Pair Corralation between Samhyun Steel and BIT Computer
Assuming the 90 days trading horizon Samhyun Steel Co is expected to generate 0.48 times more return on investment than BIT Computer. However, Samhyun Steel Co is 2.1 times less risky than BIT Computer. It trades about 0.0 of its potential returns per unit of risk. BIT Computer Co is currently generating about -0.01 per unit of risk. If you would invest 439,189 in Samhyun Steel Co on October 27, 2024 and sell it today you would lose (10,189) from holding Samhyun Steel Co or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhyun Steel Co vs. BIT Computer Co
Performance |
| Timeline |
| Samhyun Steel |
| BIT Computer |
Samhyun Steel and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhyun Steel and BIT Computer
The main advantage of trading using opposite Samhyun Steel and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhyun Steel position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Samhyun Steel vs. Stic Investments | Samhyun Steel vs. Ssangyong Information Communication | Samhyun Steel vs. Inzi Display CoLtd | Samhyun Steel vs. KTB Investment Securities |
| BIT Computer vs. SV Investment | BIT Computer vs. LB Investment | BIT Computer vs. Solus Advanced Materials | BIT Computer vs. NH Investment Securities |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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