Correlation Between Samsung Card and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Samsung Card and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Shinsegae Food.
Diversification Opportunities for Samsung Card and Shinsegae Food
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Shinsegae is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Samsung Card i.e., Samsung Card and Shinsegae Food go up and down completely randomly.
Pair Corralation between Samsung Card and Shinsegae Food
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.83 times more return on investment than Shinsegae Food. However, Samsung Card Co is 1.2 times less risky than Shinsegae Food. It trades about 0.05 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.03 per unit of risk. If you would invest 2,866,265 in Samsung Card Co on October 15, 2024 and sell it today you would earn a total of 1,123,735 from holding Samsung Card Co or generate 39.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. Shinsegae Food
Performance |
| Timeline |
| Samsung Card |
| Shinsegae Food |
Samsung Card and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Shinsegae Food
The main advantage of trading using opposite Samsung Card and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Samsung Card vs. Ilji Technology Co | Samsung Card vs. Seers Technology | Samsung Card vs. Lotte Non Life Insurance | Samsung Card vs. Innowireless Co |
| Shinsegae Food vs. Sangsangin Investment Securities | Shinsegae Food vs. DSC Investment | Shinsegae Food vs. LB Investment | Shinsegae Food vs. Innowireless 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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