Correlation Between Samhyun Steel and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Samhyun Steel and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Samhyun Steel and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhyun Steel and Koryo Credit.
Diversification Opportunities for Samhyun Steel and Koryo Credit
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samhyun and Koryo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Samhyun Steel Co and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Samhyun Steel i.e., Samhyun Steel and Koryo Credit go up and down completely randomly.
Pair Corralation between Samhyun Steel and Koryo Credit
Assuming the 90 days trading horizon Samhyun Steel Co is expected to generate 0.92 times more return on investment than Koryo Credit. However, Samhyun Steel Co is 1.08 times less risky than Koryo Credit. It trades about 0.02 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.01 per unit of risk. If you would invest 428,302 in Samhyun Steel Co on September 24, 2024 and sell it today you would earn a total of 44,698 from holding Samhyun Steel Co or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Samhyun Steel Co vs. Koryo Credit Information
Performance |
| Timeline |
| Samhyun Steel |
| Koryo Credit Information |
Samhyun Steel and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhyun Steel and Koryo Credit
The main advantage of trading using opposite Samhyun Steel and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhyun Steel position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Samhyun Steel vs. CKH Food Health | Samhyun Steel vs. Koryo Credit Information | Samhyun Steel vs. Sempio Foods Co | Samhyun Steel vs. CJ Seafood Corp |
| Koryo Credit vs. Shinsegae Engineering Construction | Koryo Credit vs. Samhyun Steel Co | Koryo Credit vs. Seoam Machinery Industry | Koryo Credit vs. Tuksu Engineering ConstructionLtd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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