Correlation Between Samsung Card and Cuckoo Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Cuckoo Electronics 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 Cuckoo Electronics 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 Cuckoo Electronics Co, you can compare the effects of market volatilities on Samsung Card and Cuckoo Electronics 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 Cuckoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Cuckoo Electronics.
Diversification Opportunities for Samsung Card and Cuckoo Electronics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Cuckoo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Cuckoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Electronics 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 Cuckoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Electronics has no effect on the direction of Samsung Card i.e., Samsung Card and Cuckoo Electronics go up and down completely randomly.
Pair Corralation between Samsung Card and Cuckoo Electronics
Assuming the 90 days trading horizon Samsung Card Co is expected to under-perform the Cuckoo Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Card Co is 1.02 times less risky than Cuckoo Electronics. The stock trades about -0.17 of its potential returns per unit of risk. The Cuckoo Electronics Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,290,000 in Cuckoo Electronics Co on October 1, 2024 and sell it today you would earn a total of 25,000 from holding Cuckoo Electronics Co or generate 1.09% 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. Cuckoo Electronics Co
Performance |
| Timeline |
| Samsung Card |
| Cuckoo Electronics |
Samsung Card and Cuckoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Cuckoo Electronics
The main advantage of trading using opposite Samsung Card and Cuckoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Cuckoo Electronics 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 Cuckoo Electronics will offset losses from the drop in Cuckoo Electronics' long position.| Samsung Card vs. KB Financial Group | Samsung Card vs. Hyundai Motor | Samsung Card vs. Hyundai Motor Co | Samsung Card vs. Hyundai Motor Co |
| Cuckoo Electronics vs. Woori Technology Investment | Cuckoo Electronics vs. Samsung Card Co | Cuckoo Electronics vs. Korea Real Estate | Cuckoo Electronics vs. CHOROKBAEM PANY 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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