Correlation Between Samsung Card and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on Samsung Card and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Jb Financial.
Diversification Opportunities for Samsung Card and Jb Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and 175330 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Samsung Card i.e., Samsung Card and Jb Financial go up and down completely randomly.
Pair Corralation between Samsung Card and Jb Financial
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.64 times more return on investment than Jb Financial. However, Samsung Card Co is 1.56 times less risky than Jb Financial. It trades about 0.4 of its potential returns per unit of risk. Jb Financial is currently generating about -0.24 per unit of risk. If you would invest 4,200,000 in Samsung Card Co on November 28, 2024 and sell it today you would earn a total of 340,000 from holding Samsung Card Co or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. Jb Financial
Performance |
| Timeline |
| Samsung Card |
| Jb Financial |
Samsung Card and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Jb Financial
The main advantage of trading using opposite Samsung Card and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Samsung Card vs. Korea Information Communications | Samsung Card vs. Haitai Confectionery Foods | Samsung Card vs. Lotte Data Communication | Samsung Card vs. Ssangyong Information Communication |
| Jb Financial vs. Hannong Chemicals | Jb Financial vs. Hanil Chemical Ind | Jb Financial vs. Hanyang Digitech Co | Jb Financial vs. Amogreentech 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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