Correlation Between Seoyon Topmetal and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal and Samyung Trading 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 Seoyon Topmetal and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Samyung Trading Co, you can compare the effects of market volatilities on Seoyon Topmetal and Samyung Trading 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 Seoyon Topmetal with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Samyung Trading.
Diversification Opportunities for Seoyon Topmetal and Samyung Trading
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seoyon and Samyung is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Seoyon Topmetal 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 Seoyon Topmetal Co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Seoyon Topmetal i.e., Seoyon Topmetal and Samyung Trading go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Samyung Trading
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to under-perform the Samyung Trading. In addition to that, Seoyon Topmetal is 2.25 times more volatile than Samyung Trading Co. It trades about -0.02 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.01 per unit of volatility. If you would invest 1,257,539 in Samyung Trading Co on August 31, 2024 and sell it today you would earn a total of 42,461 from holding Samyung Trading Co or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Samyung Trading Co
Performance |
| Timeline |
| Seoyon Topmetal |
| Samyung Trading |
Seoyon Topmetal and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Samyung Trading
The main advantage of trading using opposite Seoyon Topmetal and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Seoyon Topmetal vs. LG Display | Seoyon Topmetal vs. Hyundai Motor | Seoyon Topmetal vs. Hyundai Motor Co | Seoyon Topmetal vs. Hyundai Motor Co |
| Samyung Trading vs. Kaonmedia Co | Samyung Trading vs. Lotte Chilsung Beverage | Samyung Trading vs. Jinro Distillers Co | Samyung Trading vs. JYP Entertainment Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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