Correlation Between SBI Investment and Samhyun
Can any of the company-specific risk be diversified away by investing in both SBI Investment and Samhyun 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 SBI Investment and Samhyun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Investment KOREA and Samhyun, you can compare the effects of market volatilities on SBI Investment and Samhyun 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 SBI Investment with a short position of Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Investment and Samhyun.
Diversification Opportunities for SBI Investment and Samhyun
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBI and Samhyun is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SBI Investment KOREA and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun and SBI Investment 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 SBI Investment KOREA are associated (or correlated) with Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of SBI Investment i.e., SBI Investment and Samhyun go up and down completely randomly.
Pair Corralation between SBI Investment and Samhyun
Assuming the 90 days trading horizon SBI Investment KOREA is expected to under-perform the Samhyun. But the stock apears to be less risky and, when comparing its historical volatility, SBI Investment KOREA is 3.92 times less risky than Samhyun. The stock trades about -0.05 of its potential returns per unit of risk. The Samhyun is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 666,000 in Samhyun on October 16, 2024 and sell it today you would earn a total of 358,000 from holding Samhyun or generate 53.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Investment KOREA vs. Samhyun
Performance |
| Timeline |
| SBI Investment KOREA |
| Samhyun |
SBI Investment and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Investment and Samhyun
The main advantage of trading using opposite SBI Investment and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Investment position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.| SBI Investment vs. Youl Chon Chemical | SBI Investment vs. SH Energy Chemical | SBI Investment vs. Kyung In Synthetic Corp | SBI Investment vs. Alton Sports CoLtd |
| Samhyun vs. NICE Information Service | Samhyun vs. SBI Investment KOREA | Samhyun vs. Jeong Moon Information | Samhyun vs. Jinro Distillers Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |