Correlation Between Samsung Card and Tway Air
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Tway Air 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 Tway Air 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 Tway Air Co, you can compare the effects of market volatilities on Samsung Card and Tway Air 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 Tway Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Tway Air.
Diversification Opportunities for Samsung Card and Tway Air
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and Tway is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Tway Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tway Air 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 Tway Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tway Air has no effect on the direction of Samsung Card i.e., Samsung Card and Tway Air go up and down completely randomly.
Pair Corralation between Samsung Card and Tway Air
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.46 times more return on investment than Tway Air. However, Samsung Card Co is 2.17 times less risky than Tway Air. It trades about 0.07 of its potential returns per unit of risk. Tway Air Co is currently generating about 0.0 per unit of risk. If you would invest 2,819,277 in Samsung Card Co on November 27, 2024 and sell it today you would earn a total of 1,650,723 from holding Samsung Card Co or generate 58.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. Tway Air Co
Performance |
| Timeline |
| Samsung Card |
| Tway Air |
Samsung Card and Tway Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Tway Air
The main advantage of trading using opposite Samsung Card and Tway Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Tway Air 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 Tway Air will offset losses from the drop in Tway Air's long position.| Samsung Card vs. UJU Electronics Co | Samsung Card vs. Daesung Hi Tech Co | Samsung Card vs. Sangshin Electronics Co | Samsung Card vs. DAEDUCK ELECTRONICS CoLtd |
| Tway Air vs. Jahwa Electronics Co | Tway Air vs. Daeduck Electronics Co | Tway Air vs. SungMoon Electronics Co | Tway Air vs. Samyoung Electronics 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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