Correlation Between Samsung Card and Doosan
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Doosan 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 Samsung Card and Doosan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and Doosan, you can compare the effects of market volatilities on Samsung Card and Doosan 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 Samsung Card with a short position of Doosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Doosan.
Diversification Opportunities for Samsung Card and Doosan
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Doosan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Doosan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan and Samsung Card 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 Samsung Card Co are associated (or correlated) with Doosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan has no effect on the direction of Samsung Card i.e., Samsung Card and Doosan go up and down completely randomly.
Pair Corralation between Samsung Card and Doosan
Assuming the 90 days trading horizon Samsung Card Co is expected to under-perform the Doosan. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Card Co is 2.78 times less risky than Doosan. The stock trades about -0.13 of its potential returns per unit of risk. The Doosan is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 25,150,000 in Doosan on October 23, 2024 and sell it today you would earn a total of 4,450,000 from holding Doosan or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Samsung Card Co vs. Doosan
Performance |
| Timeline |
| Samsung Card |
| Doosan |
Samsung Card and Doosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Doosan
The main advantage of trading using opposite Samsung Card and Doosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Doosan 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 Doosan will offset losses from the drop in Doosan's long position.| Samsung Card vs. Spolytech Co | Samsung Card vs. Kaonmedia Co | Samsung Card vs. Amogreentech Co | Samsung Card vs. SKONEC Entertainment 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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