Correlation Between Ilji Technology and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Samsung Fire 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 Ilji Technology and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Samsung Fire Marine, you can compare the effects of market volatilities on Ilji Technology and Samsung Fire 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 Ilji Technology with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Samsung Fire.
Diversification Opportunities for Ilji Technology and Samsung Fire
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ilji and Samsung is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Ilji Technology i.e., Ilji Technology and Samsung Fire go up and down completely randomly.
Pair Corralation between Ilji Technology and Samsung Fire
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 0.72 times more return on investment than Samsung Fire. However, Ilji Technology Co is 1.39 times less risky than Samsung Fire. It trades about 0.17 of its potential returns per unit of risk. Samsung Fire Marine is currently generating about 0.03 per unit of risk. If you would invest 371,000 in Ilji Technology Co on November 8, 2024 and sell it today you would earn a total of 30,500 from holding Ilji Technology Co or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.21% |
| Values | Daily Returns |
Ilji Technology Co vs. Samsung Fire Marine
Performance |
| Timeline |
| Ilji Technology |
| Samsung Fire Marine |
Ilji Technology and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Samsung Fire
The main advantage of trading using opposite Ilji Technology and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.| Ilji Technology vs. Seoyon Topmetal Co | Ilji Technology vs. Daejung Chemicals Metals | Ilji Technology vs. Duksan Hi Metal | Ilji Technology vs. Samsung Publishing Co |
| Samsung Fire vs. DB Insurance Co | Samsung Fire vs. Korean Drug Co | Samsung Fire vs. Kisan Telecom Co | Samsung Fire vs. Samsung Life Insurance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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