Correlation Between Daishin Information and Samhyun
Can any of the company-specific risk be diversified away by investing in both Daishin Information 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 Daishin Information and Samhyun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and Samhyun, you can compare the effects of market volatilities on Daishin Information 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 Daishin Information with a short position of Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Samhyun.
Diversification Opportunities for Daishin Information and Samhyun
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daishin and Samhyun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun and Daishin Information 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 Daishin Information Communications 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 Daishin Information i.e., Daishin Information and Samhyun go up and down completely randomly.
Pair Corralation between Daishin Information and Samhyun
Assuming the 90 days trading horizon Daishin Information is expected to generate 5.24 times less return on investment than Samhyun. But when comparing it to its historical volatility, Daishin Information Communications is 1.9 times less risky than Samhyun. It trades about 0.01 of its potential returns per unit of risk. Samhyun is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 911,666 in Samhyun on October 17, 2024 and sell it today you would earn a total of 90,334 from holding Samhyun or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Samhyun
Performance |
| Timeline |
| Daishin Information |
| Samhyun |
Daishin Information and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Samhyun
The main advantage of trading using opposite Daishin Information and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information 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.| Daishin Information vs. Korean Reinsurance Co | Daishin Information vs. Samsung Publishing Co | Daishin Information vs. Incar Financial Service | Daishin Information vs. Woori Financial Group |
| Samhyun vs. Daishin Information Communications | Samhyun vs. Taegu Broadcasting | Samhyun vs. TS Investment Corp | Samhyun vs. Sangsangin 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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