Correlation Between Samsung Card and Aurora World
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Aurora World 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 Aurora World 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 Aurora World, you can compare the effects of market volatilities on Samsung Card and Aurora World 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 Aurora World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Aurora World.
Diversification Opportunities for Samsung Card and Aurora World
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Aurora is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Aurora World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora World 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 Aurora World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora World has no effect on the direction of Samsung Card i.e., Samsung Card and Aurora World go up and down completely randomly.
Pair Corralation between Samsung Card and Aurora World
Assuming the 90 days trading horizon Samsung Card Co is expected to under-perform the Aurora World. In addition to that, Samsung Card is 1.98 times more volatile than Aurora World. It trades about -0.04 of its total potential returns per unit of risk. Aurora World is currently generating about -0.05 per unit of volatility. If you would invest 604,653 in Aurora World on October 12, 2024 and sell it today you would lose (4,653) from holding Aurora World or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Samsung Card Co vs. Aurora World
Performance |
| Timeline |
| Samsung Card |
| Aurora World |
Samsung Card and Aurora World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Aurora World
The main advantage of trading using opposite Samsung Card and Aurora World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Aurora World 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 Aurora World will offset losses from the drop in Aurora World's long position.| Samsung Card vs. LG Household Healthcare | Samsung Card vs. CKH Food Health | Samsung Card vs. DoubleU Games Co | Samsung Card vs. Aprogen Healthcare Games |
| Aurora World vs. Seoul Semiconductor Co | Aurora World vs. Hotel Shilla Co | Aurora World vs. Echomarketing CoLtd | Aurora World vs. KCC Engineering Construction |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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